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1. An investment company hires you to design a mutual fund. They ask you to design it in a way that has little risk, but
1. An investment company hires you to design a mutual fund. They ask you to design it in a way that has little risk, but logically they also want it to have a positive return or return. How would you design it? (put at least 2 strategies that you would use).
2. An investor is convinced that the efficient markets hypothesis is correct. In that case, does it make sense to invest your money in a fund that mimics the S & P500 index, or some other market index? Or is it the other way around, if you believe in the efficient markets hypothesis, you will not invest in these types of funds? Explain your answer
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