I need help.

Rodrick Mashandas and his wife, Sandra, have been married for nearly 30 years, during which time they have enjoyed enormous business success. The Mashandas started their marriage as small shopkeepers and grew their business rapidly. They turned their first shop into a successful chain of retail stores. From that base, they expanded into global trading. Eventually, they began to manufacture a variety of items for sale both their own stores and for export. After diversifying their business geographically and integrating vertically, the Mashandas broadened their business interests into real estate. Their holdings expanded beyond their initial investment in residential apartments into large commercial spaces and office buildings. Ultimately, they parlayed their first small business into a large conglomerate incorporating several industries on both sides of the Pacific. Even though Rodrick Mashanda is 61 and his wife is 58, they remain very active in running their businesses. In addition to their varied business interests, the Mashandas have a substantial portfolio of marketable securities. Although they have historically managed their securities portfolio themselves, they decided to bring in a professional advisor once the portfolio exceeded 100 million Hong Kong dollars (HKD). They consulted Virgil Fick, CFA, about the asset allocation and security selection in their investment portfolio. The Mashandas told Fick, "we have two grandchildren, and we would like to be able to leave each one 100 million HKD of marketable securities in our estate." Fick reminded the Mashandas that they could expect to enjoy long lives, but Rodrick Mashanda asked him, "Kindly plan our investments so the portfolio reaches the target by the time I am 75." Fick points out that the current value of the portfolio is already 102 million HKD, so that goal should be reachable, especially since the Mashandas are not subject to income taxes on portfolio income or capital gains. The Mashandas would also like to fund some charitable activities. "If the portfolio can afford it, we would also like to give 1 million HKD per year to various organizations," Sandra Mashanda tells Fick. "And we would like to increase that figure every year for inflation," adds Rodrick Mashanda. Fick and the Mashandas agree to plan for an inflation rate of 1% per year. Fick reviews the current holdings in the portfolio with the Mashandas. He notes that the portfolio contains nearly 20 million HKD of equity in the golden Flower trading company (GFTC). The Mashandas have had GFTC in their portfolio for several years because they consider it a good company. Fick advises them, however, to sell some of the position in order to diversify their portfolio. Rodrick Mashanda points out to Fick that GFTC has fallen 15% from its high, reached several months ago. "We don't want to lose money, so please wait to sell until it comes back." Sandra Mashanda elaborates, "We prefer to own companies that we know. We don't like to rely on investment research because a company's financial statements do not tell us what the company is really like. We want to know personally the people who run the companies we invest in, and know that they are careful and prudent. Once we make an investment, we hold on to it." 1. Formulate the Investment Policy Statement (IPS) for the Mashandas 2. The Mashandas' decision to invest in the equity of GFTC because they consider it a good company, exhibits which bias? 3. In what psychological trap is Rodrick Mashanda falling into when he says he is reluctant to sell GFTC until it returns to its earlier high? 4. Sandra Mashanda's description of how she and her husband choose the companies they invest in, describes which type of investor? Rodrick Mashandas and his wife, Sandra, have been married for nearly 30 years, during which time they have enjoyed enormous business success. The Mashandas started their marriage as small shopkeepers and grew their business rapidly. They turned their first shop into a successful chain of retail stores. From that base, they expanded into global trading. Eventually, they began to manufacture a variety of items for sale both their own stores and for export. After diversifying their business geographically and integrating vertically, the Mashandas broadened their business interests into real estate. Their holdings expanded beyond their initial investment in residential apartments into large commercial spaces and office buildings. Ultimately, they parlayed their first small business into a large conglomerate incorporating several industries on both sides of the Pacific. Even though Rodrick Mashanda is 61 and his wife is 58, they remain very active in running their businesses. In addition to their varied business interests, the Mashandas have a substantial portfolio of marketable securities. Although they have historically managed their securities portfolio themselves, they decided to bring in a professional advisor once the portfolio exceeded 100 million Hong Kong dollars (HKD). They consulted Virgil Fick, CFA, about the asset allocation and security selection in their investment portfolio. The Mashandas told Fick, "we have two grandchildren, and we would like to be able to leave each one 100 million HKD of marketable securities in our estate." Fick reminded the Mashandas that they could expect to enjoy long lives, but Rodrick Mashanda asked him, "Kindly plan our investments so the portfolio reaches the target by the time I am 75." Fick points out that the current value of the portfolio is already 102 million HKD, so that goal should be reachable, especially since the Mashandas are not subject to income taxes on portfolio income or capital gains. The Mashandas would also like to fund some charitable activities. "If the portfolio can afford it, we would also like to give 1 million HKD per year to various organizations," Sandra Mashanda tells Fick. "And we would like to increase that figure every year for inflation," adds Rodrick Mashanda. Fick and the Mashandas agree to plan for an inflation rate of 1% per year. Fick reviews the current holdings in the portfolio with the Mashandas. He notes that the portfolio contains nearly 20 million HKD of equity in the golden Flower trading company (GFTC). The Mashandas have had GFTC in their portfolio for several years because they consider it a good company. Fick advises them, however, to sell some of the position in order to diversify their portfolio. Rodrick Mashanda points out to Fick that GFTC has fallen 15% from its high, reached several months ago. "We don't want to lose money, so please wait to sell until it comes back." Sandra Mashanda elaborates, "We prefer to own companies that we know. We don't like to rely on investment research because a company's financial statements do not tell us what the company is really like. We want to know personally the people who run the companies we invest in, and know that they are careful and prudent. Once we make an investment, we hold on to it." 1. Formulate the Investment Policy Statement (IPS) for the Mashandas 2. The Mashandas' decision to invest in the equity of GFTC because they consider it a good company, exhibits which bias? 3. In what psychological trap is Rodrick Mashanda falling into when he says he is reluctant to sell GFTC until it returns to its earlier high? 4. Sandra Mashanda's description of how she and her husband choose the companies they invest in, describes which type of investor