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4. Investing Your Uncle's Bequest Your favorite uncle passed away unexpectedly last month. It turned out that, unbeknownst to to you, your favorite uncle was

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4. Investing Your Uncle's Bequest Your favorite uncle passed away unexpectedly last month. It turned out that, unbeknownst to to you, your favorite uncle was a "Millionaire Next Door". He bequeathed you S1 Million in cash with the sole request that you invest it wisely. Itturns out that your have been very fortunate so far in life, and that you will be able to graduate from college without any student debt Your father works on Wall Street, and he recommends that you confine your investments to the following types of securities: Cash (Cash) 90-Day US. Treasury Bils (Bils) Two-Year U. S. Treasury Notes (Notes); 30-Year Investment Grade Corporate Bonds (Corporates): a low-fee mutual fund investing in the stocks of the Dow Jones Industrial Average (DJIA): a low-fee mutual fund investing in the stocks of the Standard & Poors 500 (S&P 500) and a low-fee mutual fund investing in a very broad variety of small capitalization stocks GSmal Caps. You decide to confine your investment choices to these "Asset Classes Cash: Bills: Notes: Corporates: DJIA: S&P 500, and: Small Caps. After discussion and contemplation, and after your father pointed out that a Porsche 911 Twin Turbo was not an investment, you decide to divide your bequest into three pots: (1) Investing to make a 20% down payment on the purchase of a home in two (2) years. (2) Investing to provide private junior high school, high schoolprep school and college educations for the child you hope to have in two years. Thatchid would enter junior high school in 15 years. (3) Investing to provide for your own retirement starting in forty (40) years. Which "Asset Class' would be the best initial investment for each pot? Asset Class Pot 1) Down Payment in Two Years (2) Child's tuition in 15 Years belden. ONLI (3) Your Retirement in 40 Years

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