Part I Question(s)

Explain the importance of net asset value (NAV) for mutual fund investing.

Now look at the performance of ProShares UltraShort Silver (ZSL) fund and iShares Russell 2000 Index (IWM). Use NAV and other criteria to choose one fund for investment purposes. Yahoo performance reports provide a good overview. Please explain your reasoning in brief.

Based on your analysis and findings, which investment strategy is better (active or passive)?

Which investment strategy would you recommend to other investors? Please explain your reasoning.

Part II

Overseas investment, even after some recent chills, remains a hot prospect in the financial community. Investor demand for ways to invest in strongly growing developing markets such as China, Japan, India, and Thailand has led to the creation of several new funds. These include:

The China Fund (NYSE: CHN) [http://finance.yahoo.com/q?s=CHN%2C+&ql=1],

India Fund (NYSE: IFN) [http://finance.yahoo.com/q?s=IFN&ql=1],

Japan Equity Fund (NYSE: JEQ) [http://finance.yahoo.com/q?s=JEQ%2C+&ql=0],

Thai Fund (NYSE: TTF), [http://finance.yahoo.com/q?s=TTF&ql=0],

Market Vectors Vietnam ETF (VNM), [http://ca.finance.yahoo.com/q?s=VNM&ql=0],

The Taiwan Fund, Inc. (TWN), [http://ca.finance.yahoo.com/q?s=TWN&ql=0], and several others.

Assume that you are an investor planning the placement of several million dollars and want to diversify with a global investment. You will have to manage with limited information as to the performance record of the funds, and supplement what's forthcoming from the funds with your own diligent research.

Part II Questions

Would you choose to invest at least 10% of your long-term portfolio in one or two country funds? What would you expect to happen to your money? Why?

Based on your analysis and findings, which fund would you recommend to other investors? Why?

In your report, please include the followings together with other necessary information that you think should be included.

The long-term potential for growth in the country chosen

The risk involved with investing in either of these countries.

The potential for major political or economic upheaval that might impact the performance of the fund.

The diversification benefits of investing in either country -- will investing in a foreign country have diversification benefits for your portfolio, as opposed to solely investing in US funds?

What are some good notes to write a 5-7 page paper on the question above????