Personal Finance by Kapoor,Dlabay, and Hughes: Questions from CH.16 Financial Planning Case

Using this website for the information on the mutual fund, answer the following questions.

http://www.morningstar.com/invest/funds/59286-vpmax-vanguard-primecap-adm.html

1. Based on the research provided by Morningstar, would you buy shares in the Vanguard Primecap fund?

2. What other investment information would you need to evaluatted this fund? Where would you obtain this information?

3. On July 7, 2010, shares in the Vanguard Primecap Stock fund were selling for $54.83 per share. Using the internet or newspaper, determine the current price for a share of this fund. Based on this information would your investment have been profitable? (Hint: Symbol for this fund is VPMCX.)

4. Assuming you purchased shares in Vanguard Primecap fund of July 7, 2010, and based on your answer to question 3, how would you decide whether you want to hold or sell your shares? Explain your answer.