1. Rachel, 28, a software engineer, decides to opt for a traditional IRA instead of a Roth IRA for her retirement plan. Her plan includes 75% stock which is high-risk, high-reward. Identify the primary weakness or disadvantage in Rachel's IRA choice. 

2. Which of the following is a feature of a passively managed mutual fund?

a.) A passively managed mutual fund always invests in stocks whose market price is expected to rise sharply.

b.) A passively managed mutual fund invests in stocks that are undervalued and are available at rates lower than their actual value.

c.) A passively managed mutual fund invests in the same set of stocks as found in the market index.

d.) A passively managed mutual fund is managed by a group of trained professionals and has higher brokerage costs than actively managed funds.