If the family opt for a farm business it will be extremely difficult for them to operate such business because they are more likely to have a very less knowledge about the operations and workings on farm. In addition to this it will be a more risky alternative because technically it is hard enough to predict the returns that can be earned by selling farm products. Farmers remain unable to predict the future prices of their products accurately that makes it difficult and more risky for them.
A speculative mining venture is also going to be extremely risky venture for the family because many technicalities are associated with speculative mining ventures too. It makes it difficult to earn high returns because hiring of trained persons of the field is also very costly. Cost is further increased in such businesses because information gathering is also very much expensive in this regard.
A long term investment portfolio is also a good option for Lee family because if managed properly and construction of portfolio is done in a way that assets included in it are not much correlated, the return can be increased to a larger extent. The portfolio of investment will have to be designed in a way that it contains less correlated assets so that negative returns on any particular assets can be offset by the positive returns on some other asset. Risk averse people often consider investment in long term portfolio to be a preferable alternative because of the reason that it is associated with a very low level of risk.
On the whole it can be concluded that starting a retail business and investment in a long term portfolio are the viable alternatives available for Lee’s family. It depends on the level of risk that they are willing to take that for which alternative they will ultimately go for. If the members are more risk averse they will opt for investment in a long term portfolio because they will be able to manage it from time to time. A huge level of flexibility is also associated with such investment making it more attractive to be held for a longer period of time. But the returns will be delayed in this case. On the other hand if they invest in retail business they will start enjoying the returns very soon after initial investment. The factor that is required to be kept in view by Lee’s family is that high risk is associated with high returns so if they want to earn high returns they will have to take high risks too.