Economics Homework Help

1. Assume you are an investment advisor. Your client is unsure what
the main benefits and reasons for investing in a Mutual Fund or an
ETFs are

Explain the main differences and similarities between each
other

Explain what the main advantage and disadvantage of
investing in mutual funds or ETFs are

Explain the main difference between active and passive
management

2. Go to https://www.morningstar.com
o What information does the Morningstar Style Box® provide?

Morningstar assigns a Rating to each Mutual Fund. What are
the criteria they use to assign this rating?

Use the information provided above (style box and ratings) to
choose 5 different mutual funds/ETFs (5 funds/ETFs per
each portfolio) to prepare 3 portfolios for 3 different types of
investors:

1. Aggressive
2. Moderate
3. Conservative

In half a page for each portfolio, explain:

1. The rationale behind choosing the given funds/ETFs
per each portfolio

2. The criteria chosen to build each portfolio

3. Follow up the prices for all 3 portfolios for a week.
Calculate the return for each portfolio at the end of the
week.

Explain your results.