Problem 3 Ten years into your hedge fund career, you grow a little tired of constantly keeping track and making high-stakes bets on market fluctuations. You've accumulated enough personal wealth that you can simply coast for the rest of your life if you so wish - so, you close down Duck Capital. However, shortly after your "retirement", you get offered the position of CEO of Duck Bank, a super-regional commercial bank established by another group of UO alumni from your graduating class. It turns out that the founders of Duck Bank sought you out due to your excellent combination of experiences in both central banking and financial markets. Your ambitious side gets the better of you, and you grudgingly accept the offer.

Part (b) (5 pts.) You decide that the bank's balance sheet is insufficiently diversified - Duck Bank's assets should be allocated toward more than only three asset classes. In order to add an extra asset class to the balance sheet, you decide that the bank should raise funds rather than simply reallocating from its current composition. List and explain all of the ways in which Duck Bank can raise new funds, along with the pros and cons of each method. Hint: Think stocks and bonds.

What are the best ways I could incorporate stocks and bonds into fundraising? Just some pros and cons of some methods would be awesome!