Vanguard Group, Inc., in 2006 and Target Retirement Funds

1.Discuss and explain the relationship between the development of the index fund industry and the modern portfolio theory.

2.Why does Vanguard promote the life-cycle funds? Are they successful in their effort?

3.What are the risks in offering the new product?

4.Discuss and explain the relative merit (and disadvantage) of Vanguard's business model as compared to the rest of the investment management industry.