Questions 1

i. You know it is fruitless in paying fees to mutual fund managers to choose which stock to buy for you. After carefully reviewing your decision, you decide to buy shares in a mutual fund. Could you explain why you make this decision?

ii. Else if you wish to invest hedge fund instead of mutual funds. What distinguishes the investing strategies of hedge funds from those of mutual funds? Compare and contrast the two.

iii. As an investor that uses both mutual funds and equity crowdfunding, what similarities and differences between the two do you see?

iv. Pfizer Inc. is an American multinational pharmaceutical corporation that is in the third and last stage of developing a COVID-19 vaccine with its partners. The company announced on Wednesday, July 22nd, 2020, that the U.S. government will pay (has not paid yet) Pfizer $1.95 billion to produce and deliver 100 million doses of their Covid-19 vaccine if it proves safe and effective. Does this mean that if you read the news one day later, you should buy Pfizer's stock expecting to earn above-average returns? Why or why not?

v. Compare and contrast active and passive management

vi. A successful firm like Apple Inc. has consistently generated large profits for years. Is this a violation of the EMH?