a) If you have to choose between these three alternatives then you should choose to invest in preferred stocks. Preferred stocks are considered to be less risky than the common stock and it provides more return than a bond would provide. The growth stocks are highly risky and high return in the long term and bonds are least risky but also provide the least amount of return. Given the objective of maximizing return while minimizing risk the best alternative here would be to invest in the Alternative 1 because other alternatives are either highly risky or provide very little return. The other approach could be diversification which is not here in the alternative, it would to create a portfolio consisting of all the three-investment alternative with different weights in the portfolio.

b) The investment objective that you should set for yourself should be to sustainably grow your wealth in the long term while taking less risk on the investment and also while taking care of the liquidity requirement. One should try to look for investment where the return is justifiable for the risk being taken. The investment objective in the short run and medium should be to meet the liquidity requirement if there is any but in the long term the objective should be to sustainably grow wealth over a long period of time.

c) Based on the objective if the requirement is for meeting short term liquidity needs then the investor should choose to invest in Bonds. Bonds are safe investment to a certain extent and the returns during the short term are also good and above the inflation rate but if the investor objective is to create wealth or to accumulate wealth over a long period of time then the investor should choose to invest in either growth stocks or preferred stocks.