Mr Twalibomba Kale is about to retire after an illustrious career in the Zambian civil service. He is expecting to receive a net of K2.5 million in retirement benefits. As an Investment Advisor, you have been approached by Mr Kale to advise on the options available for him to consider.

Required:

1. Advise on the main asset classes available in Zambia clearly showing the common investment time horizon for each.
2. Explain the difference between Direct and Indirect investment while clearly highlighting the main players under each approach.
3. Explain why preferred stock is referred to as a hybrid security.