1. Given the financial situation of Giacomo and Chiara and their objectives, what kind of mutual funds do you think the consultant will advise them to invest in?
2. How could the answer in part a change if Giacomo and Chiara had a payment of 20,000 for educating their youngest son coming up in six months?
3. If Giacomo and Chiara were very different Investors- in their forties, both of them risk taker who like to gamble and invest in some new risky companies, and with no plan to take a vacation every two months- how would the answer in part a change?
4. Assume that Giacomo and Chiara invest in a high-yield bond mutual fund that earn 6% annually from interest income and capital gains, and that they need to receive 6,000 a year for vacations. What would be the size of their investment account three years from now?