PFIN 5th Edition by Randall Billingsley,Lawrence Gitman,Michael Joehnk

Exercise 7

Adapting to a low interest rate environment. A retired couple has expressed concern about the really low interest rates they're earning on their savings. They've been approached by an advisor who says he has a "sure-fire" way to get them higher returns. What would you tell this retired couple about the low-interest-rate environment, and how would you advise them to view the advisor's new prospective investments?