Helmut Bosh, a 22-year-old recent college graduate, has a low risk tolerance. He has signed up with

Question:

Helmut Bosh, a 22-year-old recent college graduate, has a low risk tolerance. He has signed up with his employer's 401(k) plan but has chosen to put all his money in an guaranteeing a 5 percent annual return. Evaluate Helmut's strategy.
Annuity
An annuity is a series of equal payment made at equal intervals during a period of time. In other words annuity is a contract between insurer and insurance company in which insurer make a lump-sum payment or a series of payment and, in return,...