Suppose you are an investment adviser at Kowloon East Investment Co., Ltd., a local asset management company. Richard, a wealthy dentist, recently approached you for some advice. a. During a meeting you suggest that he should invest in around 30 equities drawn from several industries. Richard told you that I trust my stock-picking ability and believe that I should invest my funds in the four best ideas. Why invest in 30 companies when I can identify the four best projects? Comment on his statement. b. You expect the market interest rate to decline in the near future even though the current bond market is not indicating any sign of this change. Which type of bond (e.g., short-term, long-term) would you suggest Richard to purchase to maximize his gains? Would you suggest him to purchase the bond now or wait until the market interest rate actually declines? Why