Studying for my Investments Finals:
Practice Exam:
18. Your uncle has asked for investment advice. Currently his entire savings are invested
in one-year treasury bills. He has been listening to his friends, however, and they are
advising him about some good stock picks. Using al l of the lessons from this course
what issues would you think about in designing a better portfolio for your uncle.
Provide a discussion of why these issues are important. Clearly indicate what advice
you would give your uncle.
My Answer: I'd say to my uncle to sell his T-bills, buy gold and other currencies, and keep his money out of banks. Actually I'd advise him to stay out of the market at all and invest all his money in traveling and beers as no matter what he does at these markets he will lose money.