How portfolio risk is impacted by the number of securities

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1. An insurance agent just offered you a new insurance product that will provide you with ?$3,743.20 16 years from now if you invest ?$400 today. What annual rate of interest would you earn if you invested in this? product?

2. Approximately how many years would it take for an investment to grow fivefold if it were invested at 9 percent compounded quarterly? Assume that you invest ?$1 today.

3. Using a single graph, explain ( in words ) how portfolio risk is impacted by the number of securities in the portfolio and explain why.

Reference no: EM131990679

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