Please pick one for each question:

Income Objective:

1. bond funds or money market funds

2. bond funds or money market funds

3. short-term, long-term, or intermediate

4. government or corporate

5. mortgage-backed, junk bond, or municipal bond

Growth Objective:

6. growth fund, balanced fund, or value fund

Growth and Income Objective:

7. growth fund, balanced fund, or value fund

8. Socially responsible fund (SRF), rights and reason fund (RRF), or global justice fund (GBF)

9. Latasha, David, or Manuel

3. Mutual fund objectives When choosing a mutual fund, one of the most important things to consider is your investment objective. Mutual funds are classified into the following three categories: income, growth, and growth and income. The following exercises feature examples of three investors, each with one of the stated goals. Complete the paragraphs to illustrate your understanding of each mutual fund category. Income Objective Manuel is a retiree with no children who is looking to purchase a mutual fund that will provide a relatively safe investment as well as regular income payments. Among mutual funds with an income objective, Manuel can either buy shares in , which invest in CDs, government securities, and short-term obligations issued by corporations, or he can invest in for a slightly higher current income return and the potential for capital appreciation as well. Within the category of bond funds are even more specific options. Manuel decides to buy shares in a fund that invests in Treasury issues maturing in five to ten years, known as bonds. He is also collecting income from shares he already owns in a fund, a type of fund that invests in high-yield, high-risk corporate bonds. Growth Objective Latasha is a 32-year-old woman with two children who owns her own home and has a substantial retirement account. She recently received an inheritance from her uncle and is looking to invest in a mutual fund that targets stocks that are undiscovered and thus priced below their true She decides to purchase shares. Growth and Income Objective David is a 25 -year-old engineer who plans to invest $500 from each monthly paycheck in a mutual fund. He is interested in a fund that includes both stocks and bond holdings (roughly 3040% in bonds) to generate both current income and capital gains, so he buys $2,000 worth of shares. He would also like to put some money into a fund that is aimed at supporting moral, ethical, or environmental issues; therefore, he purchases shares as well. One feature common to all of the above mutual funds is the automatic investment plan. Based on the characteristics of the investors above, this feature would be of most interest to