a.At the start of January 1999 one investor makes a real investment by purchasing a house for $300000 while a second investor purchases a portfolio of securities for $300000. The first investor lives in the house for the next two years. At the start of January 2001 the house is worth $350000 and the portfolio of securities is worth $375000. Which investor has fared better?(2)

b.You are working as a financial advisor. A couple close to retirement seek your advice. Should you recommend a portfolio focused on high-technology stock or one focused on corporate bonds? Would your answer be different if you were advising a young newly-wed couple?(2)

Why do bond prices go down when market interest rates go up or vice versa? Don't lenders like higher interest rates?