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Reduce the risk of a portfolio of assets

Question 1. Determine the value at the end of four years of a $10,000 investment (today) in a bank certificate of deposit (CD) that pays a nominal annual interest rate of 12 percent, compounded.

Do this for:

semi-annual
Quarterly
Monthly

Question 2. Explain how diversification can reduce the risk of a portfolio of assets to below the weighted average of the risk of the individual assets.

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