Question: 1: (3 marks) What are the main differences between bonds and shares? From the investor's viewpoint which one is riskier, why? Assume that you hold

1: (3 marks) What are the main differences between bonds and shares? From the investor's viewpoint which one is riskier, why? Assume that you hold stocks and bonds of the same corporation, what is the effect on each instrument if the corporation got into extensive financial difficulties?

2. (3 marks) As a Long-term investor, what are the financial instruments you would invest in? briefly describe each one of them. Suppose you have a friend, who is a short-term investor. What are the financial instruments that he would invest in? List and explain briefly.

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