3 Question 2 Part A Suppose you work for AA Pensions Trust, a private pensions organisation registered under the National Pensions Regulatory Authority, Ghana. You are preparing to meet a group of individuals who are interested in investing in your personal pension products. As part of the agenda for the meeting, your potential clients have asked for some education on the issues listed below. Write a report that briefly addresses each of the issues below: i. What is the primary goal of portfolio diversification? Briefly discuss the determinants of portfolio risk. ii. As illustrated below, Elton and Gruber (1977) shows that about 80% of the diversifiable risk in a single stock can be eliminated with about 10 securities in the portfolio. 49.2 - Diversifiable risk 23.9 Average annual standard deviation (%) 19.2 Nondiversifiable risk 10 20 30 40 1,000 Number of stocks in portfolio a. Distinguish between diversifiable and non-diversifiable risk of a security b. Given the findings of Elton and Gruber, as illustrated above, would you expect individual investors and institutional investors - mutual funds,2:07