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Top Row, Research, then scroll down to Mutual Funds (4^th down).

Q1: Which of the following asset classes is the riskiest?

A) Money Market

B) Municipal Bonds

C) Taxable Bonds

D) US Equity

E) International Equity

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Locate Fidelity Short-Term Treasury Bond Index. Its "ticker symbol" is FUMBX.

In the upper right, next to the magnifying glass type is the ticker symbol. This is where it says "Search or get a quote."

Click on chart titled Hypothetical Growth of $10,000.

Q2. If I had invested in FUMBX ten years ago (i.e., on 1/31/2011), how much would it have been worth on 1/31/2021? (Hint: Hover over the date, and the value of the fund and its benchmark are shown.)

$____________________________

What was its 10-year average annual return? That is, what was its geometric average return for the ten years ending 1/31/2021?

You can solve the problem using a calculator, equation, or Excel function.

SHOW WORK. For example, if you use a calculator, show the keystrokes! If you don't show work, you don't get any points!

Q3. If I had invested in FUMBX ten years ago (i.e., on 1/31/2011), I would have earned _____________% per year, compounded annually.

Q4. If I had invested $10,000 in FUMBX ten years ago, how much would it have been worth on 1/31/2017?

(Hint: Hover over the date, and the value of the fund and its benchmark are shown.)

$____________________________

Q5: What was its 4-year average annual return? That is, what was its geometric average return for the four years ending 1/31/2021? [That is, from 1/31/2017 to 1/31/2021.]

SHOW WORK. For example, if you use a calculator, show the keystrokes! If you don't show work, you don't get any points!

[Hint: If you use a calculator, the FV is the same for questions 3 and 5 because it is the same ending date!]

Q6. If you would invest $10,000 in this fund, how much money would you pay Fidelity annually to manage your account? [Hint: Look at the Expense Ratio (net)].

SHOW WORK ... NO WORK, NO POINTS!

$ _____________

Q7. What is the benchmark for the fund?

[Hint: Look at the Hypothetical Growth of $10,000 Chart. The first fund is the fund you're looking at (FUMBX), the second fund is the benchmark, and the third is the "style".] Another hint: The benchmark is not a number.

Q8. This fund is comprised of government bonds. What is the weighted average maturity of this fund?

__________________ years.

Q9. What is the "30-Day Yield" of the fund? This is a close approximation of the yield-to-maturity.

________________ %.

Q10. Are the bonds high grade or low grade?

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