The following questions needs to be done with the help of case study below:

Ernie is in his mid-fifties and was raised by parents from the Depression era. As a result, he is very risk averse. Ernie recently came into a very large amount of money and he wants to put it where it will be safe but also earn him some return. His banker tells him that he should put the money in a five-year GIC. Ernie asks if there is any way he can lose his money and he is told that the CDIC insures the deposit and the GIC will give him a higher return than a passbook savings account. Ernie purchases the GIC and goes home happy, knowing that his money is safe and available whenever he needs it.

Four months later, the roof on Ernie's barn collapses. He needs the money in his GIC to make repairs but finds that he can only withdraw it at a substantial penalty.

1. Comment on the ethics of the banker in not fully discussing all risks associated with GIC investments.
2. Is Ernie correct in his thinking that he can find a totally risk-free investment?