QUESTIONS
1. Do you think that the Fed will use a stimulative monetary policy at this point? Or do you think they will wait and if so , how long?
2. You maintain a large portfolio of US bonds. You believe that if the Fed does not revise its monetary policy, the US economy will continue to decline. If the Fed stimulates the economy at this point, you believe that you would be better off with stocks than with bonds..explain why?
3. If you switch to stocks, should you consider diversifying your stocks to include foreign stocks?
4. What models might you use to value the stocks and track its performance?
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