1.) For each pair of funds listed below, select the one that is likely to be less risky. Briefly explain your answer. a.) Growth versus growth-and-income funds. b.) Equity-income versus high-grade corporate bond funds. c.) Balanced versus sector funds. d.) Global versus value funds. e.) Intermediate-term bonds versus high-yield municipal bond funds. f.) Target date fund with a target date of 2020 vs. one with a target date of 2040.

2.) Describe an ETF and explain how these funds combine the characteristics of both open-end and closed-end funds. Consider the vanguard family of funds. Which of its funds most closely resembles a spider (SPDR)? In what respects are the Vanguard fund (that you selected) and spiders the same> How are they different? If you could invest in only one of them, which would it be? Explain.