Address all of the following questions in a brief but thorough manner.
- What is the Expected Rate of Return on an investment and what does it tell us about the probability of the risk involved with a particular investment?
- How could the required rate of return of an investment be estimated?
- In terms of risk, what are the advantages (and/or disadvantages) of a well-diversified portfolio?
The final paragraph (three or four sentences) of your initial post should summarize at least the one or two key points that you are making in your initial response.
Your posting should be the equivalent of 1 to 2 single-spaced pages (500–1000 words) in length.