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Please show all work and circle answer, answer 1-5 pleaseee Problem#5, Mutual Fund Exercise This problem is similar to the exercise we did in class,

Please show all work and circle answer, answer 1-5 pleaseee image text in transcribed
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Problem#5, Mutual Fund Exercise This problem is similar to the exercise we did in class, w FLBAX, comprised oflong term US government bonds. hich was for r US corporate bonds. FAGrx is a High Yield CH) ooF nd fund, where the bonds are rated below investment grade. Pleas refer to the data sheet on FAGIx, and the fund valuati shown below. ons, which are Ticker Fidelity Mutual Pund 9/30/08 9/30/13 9/30/18 FLBAX Long Term Treasury Bond FAGIX Capital &e Income High Yield) FUSVX S&eP500 Index $10,000 $13,611 $16,810 $10,000 $10,000 $16,09930,869 $18,458 $25,861 1) You invested $10,000 in FAGIX (High Yield Corporate Bonds) on 9/30/08 and sold it on 9/30/18. What was your average annual return Cor "geometric average return"); that is, how much did you earn on average, each year? Show keystrokes and work. 2) A. Which fund has higher interest rate risk? A) FAGIX B) FBLAXx 2) B. Which fund has higher credit risk? A) FAGIX B) FBLAX 3) What is the benchmark for FAGIX? A) S&eP500 Index B) Russell 2000 Index C) EAFE Index D) 8-month Treasury Bills E) None of the above

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