Grandola is a small, moderately developed country in Europe. It has a total population of just over 3 million, with GDP per capita of around $6,000. The country has been moving from socialism to capitalism. During this transition period, the government has privatized many publicly owned companies. As a result, the government has proceeds from privatization amounting $10b. 

What should the investment opportunity set be? What are the constraints? 

b) In what financial assets would you invest the money? Which one would maximize the long-term return? Be specific about the investments and elaborate (i.e., international equities, real estate, large cap & small cap equities, bonds, venture capital, private equity, commodities etc.). What are the advantages and disadvantages of your preferred investment? 

c) In what markets would you invest? Would it be in Europe only, the US or globally? Would you invest in different industries? 

d) What are the expected returns and risks? Which asset allocation makes the most sense, overall, in terms of returns, risks, and liquidity? 

e) Does the role of a fiduciary differ across these mandates? Why or why not?