PART 1

1. Briefly discuss each of the eight steps in the investment planning process.

2. Explain the importance of client assessment and capital markets assessment.

3. Describe the three types of investments that can be included within a portfolio.

4. Discuss the importance of continuous monitoring of portfolios.

PART 2

1. Describe some of the debt instruments that may be included in a money market fund and the nature of these type instruments.

2. Explain how an investor might manage interest rate risk through the use of CDs.

3. Briefly discuss the nature of fees associated with the purchase of CDs as they relate to (a) banking institutions and (b) brokerage firms.

PART 3

1. Describe why a risk adverse investor would be inclined to favor a direct issue of Treasury Department over a corporate issue of similar length to maturity.

2. Discuss the tax ramifications of purchasing a T-bill on the open market prior to its maturity.

3. Briefly discuss, if all government securities with like maturites have the same risk/reward characteristics, WHY an investor might be selective in the type of security he purchases?