Investments

Investments are based on the belief that the rate of return justifies  or compensates the investor for the risk associated with that  particular investment. The risk associated with this investment is  associated with the chance that a loss will be incurred. Or, to put it  another way, the greater the chance of a loss the more risky the  investment. Therefore, some statistical measures of the risk involved  with an investment are necessary before the investment is made.

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.

***Tutor***Paper need s to be 1-2 pages, 500-1,000 words in APA format.