Sentence Count: Between 10 and 30 sentences, no more Background Suppose you are advising a friend, a novice investor, who wants to invest over a 3-year horizon (she wants to invest 1M pesos now and re-evaluate her options after 3 years) her personal savings that she has accumulated over 10 years. You have before you the following information about some domestic investment vehicles with their annual interest rates (or returns, or yield) and the expected inflation rate: 1. bank savings account (1 %) 2. 3-year bank time deposit account (3 %) 3. 3-year Philippine Treasury bonds (2.8 yield %) 4. 3-year peso corporate bonds (4.5 % yield) 5. mutual fund (average ROI of 6 % in the past 3 years) 6. bank stocks (BDO, BPI, MetroBank, RCBC) 7. non-bank stocks (Ayala Land, Aboitiz Power, Jolibee Foods Corp., SM Prime Holdings, PLDT, Universal Robina Farms, San Miguel Corp., Phoenix Petroleum, John Gokongwei Summit Holdings) Expected 3-year inflation rate: 2.5 % Possible sources of (closing) stock prices: investing.com, PSE (Philippine Stock Exchange), others.Instructions: Answer/discuss all the questions below (from 1 to 4). Write in your own words. Your answers should run from 10 to 30 sentences, no more (place your sentence count at the top of your post/answer). Show your understanding of the basic concepts discussed in the notes, video tutorial(s) and other readings. Exhibit your critical thinking skills in your reasoning/arguments. Show your imagination in your answers. If you have to lift or use quotes or phrases from published sources, cite/reference those sources properly. (1) How would you go about advising your friend about how she should invest her 1M pesos? How would you explain the nature or significance of the information on the domestic investment vehicles available to you (or your friend) on which your advice will be based partly? (2) Where would you suggest she put her money? (Note: If youre suggesting non-bank stocks, be specific by naming the particular company or companies that owns these stocks, describing briefly the nature of their business, and stating the stocks average returns the past 3 years. Choose only from the following: Ayala Land, Aboitiz Power, Jolibee Foods Corp., SM Prime Holdings, PLDT, Universal Robina Farms, San MiguelCorp., Phoenix Petroleum, JG Summit Holdings; Similarly, if youre suggesting bank stocks, limit your advice to the following ones only---BDO, BPI, MetroBank, RCBC.) (3) How would you justify your advice? For example, why invest on this or on that and not that (meaning, compare/contrast)? What is the reason or reasoning behind your suggestion(s)? What are the tradeoffs? (4) How would your advice/suggestion(s) help the development of the financial system of the Philippine economy (money market, capital markets, financial intermediation) in the short run and/or long run, if at all? Explain.