1) Assume your income over the last year was $50,000, grows at 10% for 30 years, and that it is a relatively risky job so a 5% discount rate is warranted (this is still considered bond-like risk/returns). Also, assume that you will have $200,000 saved by the end of 10 years, with the return on your investment of 12% per year since you invest in all equities. What is your allocation to equity today considering your financial and human capital?

1.89%

25.00%

28.57%

64.84%

100.00%

2) Please use the following documents to answer the question.

Country classifications

https://www.msci.com/market-classification

General classification standards

https://www.msci.com/documents/1296102/1330218/MSCI_Global_Market_Classification_Framework_2018.pdf/a25c222d-319e-318c-8213-92c38b2e4bcf

Market accessibility review

https://www.msci.com/documents/1296102/1330218/MSCI_Market_Accessibility_Review_Country_Comparison_2018.pdf/176b7893-5843-b1ea-e266-2fb19b7cca77

Country by country commentary

https://www.msci.com/documents/1296102/1330218/MSCI_Global_Market_Accessibility_Review_June_2018_%28FINAL%29.pdf/04dd3b70-487a-8395-912c-89a202b5b4fa

3) Which of the following is false?

The US has some restrictions on foreign ownership in one industry (4^th link above)

Frontier markets generally have worse market infrastructure than developed markets (3^rd link above)

To be classified as an emerging market, there is a minimum country GNI per capital requirement (2^nd link above)

China is classified as an emerging market

3) Please read the following article and recall our class discussion.

https://www.forbes.com/sites/feeonlyplanner/2013/07/18/whats-the-difference-mutual-funds-and-exchange-traded-funds-explained/#4f01320518ac

Which of the following is false?

Open-ended mutual funds trade throughout the day

ETFs may trade at a different price than the net asset value as the price is determined by supply and demand for the financial instrument

ETFs often have lower expenses than mutual funds

Open-ended mutual funds are redeemed by the fund