$1.$ Given the fact that Dae$-$Seong has only $$25,000$ to invest, explain why he should consider investing in mutual funds rather than individual stocks.

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$2.$ In what type$($s$)$ of stock mutual fund$($s$)$ would you recommend Dae$-$Seong invest? Why?

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$3.$ In helping Dae$-$Seong make an investment choice, what factors would you explain to him as most important when choosing a mutual fund?

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$4.$ Although most mutual funds will provide Dae$-$Seong with some level of diversification, what type of risk will Dae$-$Seong still be exposed to if he purchases a single mutual fund?

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$5.$ To assure Dae$-$Seong of the liquidity and marketability of his investment, would you recommend that he invest in an open$-$end or a closed$-$end mutual fund? Why?

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$6.$ In terms of costs, would you recommend load or no$-$load funds to Dae$-$Seong? Why?

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$7.$ Develop a model portfolio of three mutual fund types $($index$,$ growth, bond, etc.$)$ to help Dae$-$Seong understand the benefits of diversification. Explain your choices. Be sure to consider issues of risk and volatility.