Questions from Personal Finance

Q: Contrast mutual fund ownership with direct investment in stocks and bonds.

Contrast mutual fund ownership with direct investment in stocks and bonds. Assume that your class is going to debate the merits of investing through mutual funds versus investing directly in stocks an...

Q: For each pair of funds listed below, select the fund that

For each pair of funds listed below, select the fund that would be less risky and briefly explain your answer. a. Growth versus growth-and-income b. Equity-income versus high-grade corporate bonds c....

Q: Using the Morningstar information in Exhibit 13.10, evaluate the

Using the Morningstar information in Exhibit 13.10, evaluate the performance of the QQQ index-based ETF. Specifically, comment on how well it tracks the underlying NASDAQ 100 index and how its perform...

Q: About a year ago, Ramon Navarrete bought some shares in the

About a year ago, Ramon Navarrete bought some shares in the Sapphire Lake Mutual Fund. He bought the fund at $24.50 a share, and it now trades at $26. Last year, the fund paid dividends of 40 cents a...

Q: Marisa Gale, a 25-year-old personal loan officer

Marisa Gale, a 25-year-old personal loan officer at Second National Bank, understands the importance of starting early when it comes to saving for retirement. She has designated $3,000 per year for he...

Q: If you itemize your deductions, you may include certain expenses as

If you itemize your deductions, you may include certain expenses as part of your itemized deductions. Discuss five types of itemized deductions and the general rules that apply to them.

Q: Defined benefit vs. defined contribution pension plans. Briefly describe the

Defined benefit vs. defined contribution pension plans. Briefly describe the main characteristics of defined contribution and defined benefit pension plans, and discuss how they differ from cash-balan...

Q: Describe the three basic types of IRAs (traditional, Roth,

Describe the three basic types of IRAs (traditional, Roth, and nondeductible), including their respective tax features and what it takes to qualify for each. Which is most appealing to you personally?...

Q: Clint Crandall is in his early 30s and is thinking about opening

Clint Crandall is in his early 30s and is thinking about opening an IRA. He can’t decide whether to open a traditional/deductible IRA or a Roth IRA, so he turns to you for help. a. To support your ex...

Q: Explain how buying a variable annuity is much like investing in a

Explain how buying a variable annuity is much like investing in a mutual fund. Do you, as a buyer, have any control over the amount of investment risk to which you’re exposed in a variable annuity con...