1. how few stocks would an investor need to own to substantially reduce unsystematic risk in their portfolio?

approx 50 stocks provided they are diverse and randomly selected , a fund like the dow jones 30 industrials would be sufficient, you would need to buy a fund that owns all of the S&P 500

2. the terminal value using the perpetual growth rate model often produces a valuation greater than the discounted value of the forecast of the free cash flows

false, true

3. what is the future value of the terminal value of a company using the perpetual growth rate model assuming free cash flows in the last forecast period of $10 million, a WACC of 15% and a long term growth rate of 3%

83.33 million ; 85.83 million ; 66.7 million ; 10 million ; 8.5 million

4. should a company ever use a higher or lower hurdle rate compare to is weighted average cost of capital

no , yes