Bob is 50 years old. He is divorced with no children and rents his home. His only significant assets are $300,000 invested in a bank savings account and $200,000 that has accumulated in his firm's 401(k) plan. He asks Gina, a CFP® professional, to manage the assets currently held in his bank savings account, manage his cash flow, and plan for his retirement. Bob also tells Gina that he wants to focus on his long-term financial outlook. They agree that Gina will develop recommendations for the assets currently invested in the bank savings account, make cash flow recommendations, and develop long-term planning scenarios that include retirement projections. Gina and Bob enter into an investment advisory agreement so that Gina can manage the assets currently invested in Bob's bank savings account. 

Address the following questions:

1. Is Gina providing financial advice that requires financial planning? Briefly describe

2. Provide the rational reasoning on if you were making recommendations for Bob, based on the course content, what might you suggest to provide 'efficient diversification'? Specifically, identify two specific investments you might select to create Bob's financial portfolio.

3. Consider the article by Markowitz, specifically this quote:

"The process of selecting a portfolio may be divided into two stages. The first stage starts with observation and experience and ends with beliefs about the future performances of available securities.".

Based on Markowitz's definition of the two stages of a financial portfolio, how would you apply each stage to your financial investment suggestions to Bob? Consider risk reduction, rate of return, and high-risk assets versus low-risk assets. Provide the illustration in detail