1.)Allocate 17% ($22,923,680) on Gold We could enter a Forward contract to buy 16,000 Oz. of Gold 1,432.73/Oz.

Ounces of Gold @ $1,432.73/Oz now for delivery on DEC 2016, and simultaneously enter a Short 16 Futures(Since each future

=1,000 ), DEC 2016 @1766/ Oz. at T=5, By entering a forward contract and shorting the Gold Futures, we ensure that the costs of storage are non-existent while a Futures Contract, enables us to ensure we lock-in the price we buy Gold avoiding future fluctuations of price. Buy the Gold 16,000 Ounces @$1,433.65/Oz = $22,923,680 Sell Gold: 16,000 Ounces@$1,766/Oz. = $28,256,000 At T we make a Profit of :Therefor T we make a profit of $28,256,000 - $22,923,680 = $ 5,332,320 There is no worst case scenario in this strategy because we use Futures contract to lock-in the price at 2016 when we decide to sell hence this profit is guaranteed. 2) We can allocate ($30,000,000) to buying realEstate, We would buy real-Estate now as the prices are low, and after say 5 years we would sell them off and get a profit. The reason we would allocate$30,000,000 is because our capital will be tied up for the next 5 -10 years .So we would try and rent our properties out to compensate for this. $16,240,500 on Oil We could buy 150,000 Barrels of OIL now for $112.28/Barrel =$16,842,000.We could also simulteanously enter Short Futures Contract to ensure we Lock-in the price we want. According to NYMEX Brent Crude Oil Futures JUN 2011 is K=$123.66/Barrel. Hence ignoring Storage costs:SHORT FUTURES OF OIL = 123.66*150,000 = $18,549,000 Gross Profit( ignoring Storage costs) =$18,49,000-$16,240,500

= $ 1,707,000 4) 15% Treasury bonds and corporate bonds We invest $21,000,000 in U.S treasury bonds the coupon rate today for the 10yr Treasury bill is 3.36% (i.e $705,600 per year) However we can hedge against fluctuations of interest-rates by using Interest rate Swaps. Strategy 1.First we would monitor the Interest rate market to find out if the floating rates that year would be higher than the fixed rate we are receiving from the Treasury bonds. 2.If we predict that Floating interest rates will be higher then we enter an interest rate Swap with another party ensuring we convert our cashflow asset from the lower fixed rate to the higher floating rate. Hence we leave some cash in the portfolio for swaps in the future to hedge interest rate movements.