Mr. Z split his retirement fund of $268,000 between a stock index ETF and a long-term bond ETF in January 2004. At the anniversary, he reviewed the performance of these fund and found that the stock-index ETF delivered 3.5% return and the long-term bond ETF incurred a 6.7% loss. His retirement fund suffered a net loss around $4,300 in one year. Mr. Z was pretty upset about this loss and decided to fire the investment advisor who recommended those two ETFs. Mr. Z consulted with his cousin Joseph who had recently told Mr. Z that his investment advisor gave him a hot tip to trade Advanced Micro Devices stock (symbol: AMD). His cousin bragged about marking 72% return by trading AMD last year.

Answer rating: 100% (QA)

It seems like Mr Z is frustrated with the performance of his retirement fund and is considering firi... View the full answer