1. Explain why it is important for a country like the United States to promote savings and investment? (4 points) https://mru.org/courses/principles-economics-macroeconomics/expert-stock-picks 2. What is Alex Tabarrok's Investment Rule #1? (2 points) 3. What is the difference between an active mutual fund and a passive mutual fund? (2 points) 4. Explain why it is difficult to separate investing skill from investing luck using Tabarrok's coin tossing analogy. (4 points) https://mru.org/courses/principles-economics-macroeconomics/diversify-investments 5. What is Tabarrok's investment rule #3? (2 points) 6. Explain why or why not it is a good idea to invest a lot of your retirement savings in the company you work for. (2 points) 7. Suppose you are deciding between investing $10,000 in one of two mutual funds. The first charges a management fee of 1% and the second charges a fee of .2% (1/5 of 1%). In 25 years, which fund will give you a higher return, and how much more is that higher return? (2 points) 8. What should the relationship be between risk and return? What does this mean in terms of how you should balance your portfolio between stocks and bonds as you age? (4 points) 9. What is national saving? What is private saving? What is public saving? How are these three variables related algebraically? (6 points) 10. In the notes I include a link that shows the 30 companies in the Dow Jones Industrial Average. Did you know before reading this chapter that this was how the Dow is made up? Assuming this list is supposed to represent the American economy, tell me one company not on this list of 30 companies that you think should be on the list, and why. (4 points)