Ethel is a retired 75-year-old who has K5, 000, 000 after selling her small business and paying taxes on the sale. She wants to invest this money. Ethel would like the capital to rise faster than inflation to maintain the purchasing power of her wealth. However, she would also like to make low-risk investments and have easy access to at least K500, 000 per year for the next five years.

NB: Your evaluation and suggested investment strategy should:

• Give a general explanation of how financial markets are used to trade stocks, bonds, funds, futures, debts, and other investment products.

• Analyze investment alternatives that fit the scenario's financial objectives.

• Make recommendations for specific investments using the funds you have to build a portfolio.

• Analyze the risks associated with the suggested assets as well as the potential effects of diversification, taxation, inflation, and currency fluctuations on the suggested portfolio.

• Determine the projected rates of return for each investment in the suggested portfolio.

• Offer advice on both long- and short-term financial methods, and support your suggestions with arguments.

Answer rating: 100% (QA)

Financial markets are platforms where investors can buy and sell various financial instruments such as stocks bonds mutual funds exchangetraded funds ETFs futures options and other investment products ... View the full answer