Timing manual fund and conflict of interest

 The discussion paper must be at least three pages in length (double-spaced, 12-inch Times New Roman font, 1-inch margins). I do expect your paper to be at least this length. Do not write less than this amount or use bigger margins or fonts. There is no need for a header. Your name is the only thing that should be at the top of your paper. You are certainly welcome to write more than two pages.

I also want to emphasize that this is NOT a research paper. You should not use outside resources or attempt to do research to write this paper. Simply read the assigned readings, reflect on the questions below, and write a paper that responds to those questions.

In class today, we discussed Boatright’s article “Conflict of Interest” (p. 255-258 in the textbook).
For the discussion paper assignment, please also read the case study “Timing Mutual Funds” (p. 271-272 in the textbook). Then write a paper that addresses the following questions:
1) Who are “market timers” or “late traders”?
2) Do these participants create an actual or potential conflict of interest for mutual fund companies? Why or why not?
3) If a conflict of interest (actual or potential) is created, who is harmed by it and how is that party harmed?
4) Does this conflict of interest rise to the level of being morally wrong, or is the practice of allowing “market timers” or “late traders” permissible? Why is this wrong, or why is it permissible?
5) Which moral theory, Utilitarianism or Deontology (or both), justifies your judgment about what is wrong or permissible in this case? How does it (or do they) justify it?