Question 1: Mr L says: invest in real estate not stocks and shares, and not currency speculation unless George Sauros. Mr L invested: €50K small house suburb of London 1979, now €650K. €200K flat in

Question 1:

Mr L says: invest in real estate not stocks and shares, and not currency speculation unless George Sauros. 

Mr L invested:

€50K small house suburb of London 1979, now €650K. €200K flat in Kensington SW7 1988, now €1.75m. €200K grachtCentral Amsterdam 1993, now €650K

(Assume mortgage interest equals rental/dividend)

Show if and how Mr L better off with mixed share/real estate portfolio or 100% shares. What sort of risk profile does Mr L have?

Question 2:

Valuing Time

The Amin Director needs urgently to know the approx. valuation of the time lost p.a. as Euroarrest, an agency of the Commission has 2 buildings, 15 min. walk apart, instead of one building. 300 staff, split 50:50. 50% need to travel to the other building once a week, of these 50% need to travel twice a week. No meetings in August and last two weeks of December. Canteen only operates in one building so decided that staff claim additional 30 minutes lunch travel. Average staff cost: EUR 3,000 p.m. + 50%, employer paid healthcare, pension & other benefits.

Other brief points you would make?