1. Explain why the statement below makes no sense in reality. (You can base your answer on the math of how investments grow.)

An investor tries to convince you to follow his new investment model called "Damn the Torpedos". In this model, investors play it more safely while nurturing their small nest eggs (small investment account balances), ad then take on more risk as the account grows and more the risk can be afforded. After all, accounts with higher balances can afford to take bigger risks. Sounds good right?