Explain why purchasing a high-growth mutual fund can be a worse investment than taking out a second mortgage on a home and investing in the market index.
What does a negative present value mean? Does this mean that the project is losing money?
What is an option? What is the difference between a Put and a Call?
What determines the value of an option?
What kind of risk would be associated with the high growth mutual funds? How does this level of risk influence the potential return of the investment?