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- Would your inclination be to invest in mutual funds or to do the research yourself and invest in individual stocks and bonds? Why?If an investor had enough money to diversify adequatelythrough buying individual securities, why might he orshe still consider buying mutual funds instead?Why is it harder to assess the performance of a hedge fund portfolio manager than that of a typical mutual fund manager?
- Which of the following is higher risk? a. Stock market index mutual fund. b. Bond mutual fund c. Investing in Bitcoin, a crypto currency d. Invest in a certificate of deposit at a bank.Why invest in mutual funds?Explain two major reason why an investor would use a managed fund instead of investing the money in shares on his or her own. Explain why/how these are expected to benefit the investor.