Question
Brief essay A close friend of yours who knows you are currently studying finance asks you for advice on her personal investment portfolio. She understands
Brief essay
A close friend of yours who knows you are currently studying finance asks you for advice on her personal investment portfolio. She understands that fixed income-securities pay a coupon every 6 months or every year. Therefore, she is determined to invest her savings in bonds as they appear to provide guaranteed payments. She tells you that her objective is to obtain a return of at least 10% a year so that she can live off of the income stream generated by her investment. What do you tell her? Which questions would you ask her? What portfolio would you recommend to her? Why?
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