Question:

• 1. Propose three reforms to the investment markets that might reduce their exposure to systematic risk. Support your proposals with examples.
• 2. Determine two ways that financial assets contribute to the well-being of an economy. Support your answers.
• 3. Suggest one key factor that a financial manager should evaluate when determining whether to invest in stocks or bonds. Provide support for your rationale.
• 4.CreateanargumentonwhethertheWilshire5000ortheDowJonesisabetterindexoftheperformanceofthebroadstockmarketindex.Supportyouranswer.
• 5. From the website(http://www.sec.gov/about/whatwedo.shtml), examine the mission and history of the SEC. Determine whether the regulatory bodies of the securities market have been helpful or hurtful to the average investor since their creation. Support your decision.
• 6. Select one specific regulation of the securities market, and propose three ways that you believe that regulation can be improved. Please elaborate with details.
• 7. Justify why a small investor would benefit from investing in a mutual fund, as compared to the many other investments that exist. Provide support for your justification.
• 8. Take a position on the benefits and risks of a mutual fund versus a hedge fund, indicating if a financial manager is most likely to invest in a mutual fund or a hedge fund. Support your answer.