Please answer all parts of the following question.

• Advantages of investing through investment companies (services provided)
• Explain the Unit trusts concept
• Close-ended vs. open-ended funds
• Mutual funds (money market, equity, sector, bond, international, balance funds, funds of funds, asset allocation funds, index funds). Explain each
• Meaning of risk aversion

• Market risk vs. frim-specific risk
• What are the Impact of the correlation coefficient on expected return and standard deviation?

• What is single index model
• Advantages and disadvantages of the single index model

• Fama-French 3-factor model (meaning of each factor)