You are 30 years old and single. you have a moderate risk investment philosophy. you are interested in long-term investing, but you do not have sufficient funds to buy a variety of investments to be fully diversified and you do not feel you have the expertise to make good choices.
read the statements and indicate whether each statement is true or false:
o holders of mutual funds have voting rights in the mutual funds as well as the individual companies in which the mutual fund is invested. t/f
o many investors elect to invest in mutual funds because of the difficulty in constructing a fully diversified portfolio using self-selected individual stocks and bonds. t/f
o an important advantage of an open-end mutual fund is the liquidity provided by the investment company. t/f
o a managed mutual fund usually assesses a higher management fee than an unmanaged fund. t/f

Aeuropean aircraft producer has spent 15 years in developing a new aircraft that would potential threaten long-lasting boeing's dominance (monopoly) in the same class of aircrafts. the new european aircraft gets high marks on all performance measures except noise. because of the noise, the european producers management is concerned that the us government may impose restrictions which would forbid their aircraft to land in some of the american airports. without restrictions the estimated (present discounted) profit would be 125 million usd. with the restrictions the profit would only be 25 million usd. the chances of both outcomes are estimated to be 50-50. management must decide now whether to the cost of redesign program problem and a 60% chance it will fail. should the european aircraft producer start the noise redesign program if they do not have any redesign parts of the aircraft to solve the noise problem. is 25 million usd. there is a 40% chance that redesign will solve the noise additional information than mentioned above? draw the decision tree, indicate probabilities and outcomes of the events * imagine that the company could find out in advance the outcome of the u. s. government's e find the expected value of perfect information about the u. s. government's decision. decision. draw a new decision tree, indicate probabilities and outcomes of the events.