1. Illustrate how the Market Portfolio could be protected from each of the following investment risks by using modern portfolio theory investment characteristics:
Market risk
Default risk
Inflation risk
Mortality risk
2. Which of the following firms is the correct term for the definition: "These companies provide a variety of services to include the expected investment trading and advisory services, as well as money accounts similar to those at mutual funds"?
Life Insurance Firms
Brokerage Firms
Finance Companies
Payday Loan Firms