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1. Create a theoretical portfolio for a sixty-I’ve year old investor on the verge of retirement who is moderately risk-averse.

2. As the owner of Better Built Products, you plan to implement a system whereby customers who pay their bills within 30 days will receive a rebate of 5 percent on their purchases. Those who pay within 5 days will receive a rebate of 8 percent. Explain the impact of this proposal on the firm.

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