Investment Comparison Exercise Form

(This document must be completed and submitted in the discussion folder.)

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Peter Lawson

Check the discussion folder or the calendar for the due date.

This assignment has several parts. Please follow the format for your work. For Part II see the document titled Investment Comparison Part II Instructionslinked in the discussion folder.

Please use the following pattern for your discussion report.

Title Section:

Be sure to include your name, class number, and section.

I. Definitions and examples.

Regarding mutual fund investments define the following terms and give examples.

A. 12b-1 fee. Give an example of how a 12b-1 fee affects the rate of return of an investment in a mutual fund.

B. Front-end load. Give an example of how a front-end load affects the rate of return on an investment in a mutual fund.

C. Back-end load. Give an example of how a back-end load affects the rate of return of an investment in a mutual fund.

D. Expense ratio. Give an example of how an expense ratio affects the rate of return of an investment in a mutual fund.

E. What are the major sectors of the stock market? List them out.

II. Fill in the following form. See the instructions for a list of mutual funds or ETFs.(Note: find the instructions in the document linked in the folder, titled Investment Comparison Part II Instructions.)

In this part of the discussion, part II, you will act as a financial advisor. The case is a friend who is looking for advice and has a list of various ETFs and mutual funds as investments. Your job is to analyze and provide advice as to what you think would be strong options in which they could invest. Your friend has not invested in the past and tells you they are looking for broad exposure to sectors in the economy and are conservative when it comes to risk. They think they would like some companies with growth potential and some dividend income.

Strength - Listed with number one at the top	A. Profile or strategy of the fund and its diversification.	B. Fees and expense ratio comments	C a. Advised as an investment Yes or No	C b. Reasons for your judgment
# 1.
# 2
# 3
# 4.
# 5.

III. Describe investment diversity.

What is meant by investment diversity? How is investment diversity considered in terms of the number of companies? How is investment diversity considered in terms of sectors of the economy? Give an example of what is a diversified investment and then give an example of what would not be considered a diversified investment.

IV. Conclusions

In this section what is meant by having an investment plan? How does your personal risk preference play a part in developing an investment plan? What should an investor consider when investing in a fund?

V. Works Cited-

Please include references for any resources you use for the report.

At a minimum for a website, you need the name of the page. Editors, if any. The Organization. The date retrieved. Then the URL.