5.You purchased $5,000 worth of an ETF that mimics the return of the S&P 500 equities. Your brother purchased $5,000 worth of a mutual fund that invests in long term debt of S&P 500 companies. Which investment would you expect to earn the higher total return during a period when the economy experiences a deep recession?

a. S&P 500 Equities ETF

b. S&P 500 Corporate Bond Fund

c. both should have the same price

d. not enough information provided

6.What would you expect to happen to the stock market if we entered a period of high uncertainty?

a. Market rally because the market risk premium would be rising.

b. Market sell-off because the market risk premium would be falling.

c. Market rally because the market risk premium would be falling.

d. Market sell-off because the market risk premium would be rising.