How to invest a major cash windfall

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Question: It's 1982 and a group of students in finance is talking about how to invest a major cash windfall (inheritance or winning the lottery). After a brief discussion everyone agreed that a diversified portfolio of municipal bonds ("munis") was the perfect long-term plan (for reference the munis' yield was approx. 11%[1]). In no more than half page, critique that plan in terms of today's financial market environment. For comparison, assume current long-term munis' yield to be 3.5%.

Reference no: EM133430241

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