This paper explains that investors must consider their age, marital status, short/long-term goals, years to retirement, and
most especially, tolerance for risk. The author describes the Efficient
Market Theory as stating that financial market prices fully, and virtually, instantaneously reflect all relevant and available information; therefore, the investor should seek to maximize the diversification in his
portfolio. The paper recommends and gives details of various Vanguard money market funds. Tables. Table of Contents Introduction Assumptions General Theoretical Framework The Efficient Market Theory Discussion of the Portfolio Why Vanguard and Not Another Company? Final Comments on Efficient Markets