Question $1($Compulsory$)[25$ marks$]$

Ravin, an investor, wants to invest $\backslash (60\backslash \%\backslash )$ of his wealth in US treasuries, $\backslash (40\backslash \%\backslash )$ of it in shares and the rest in money market securities$.$ Ravin favors intermediate term, low risk investments. However, he is also worried that his purchasing power will decrease in the future. In the jurisdiction where his investments operate, of Ashley's taxes are lower on capital gains.

a$.$ Identify two specific US treasuries will work best for Ravin's needs.

b$.$ Critically justify your choice in a$.$

c$.$ Ravin is hesitant between investing in a treasury bill and a commercial paper. Compare and contrast the two securities and critically assess which one would be a better choice based on their characteristics.

d$.$ Ravin would also like to hold some securities in the external bond market. What do you understand by the external bond market?

e$.$ Discuss whether unsecured corporate bonds would be a good investment for Ravin given the high return that it generates.