Asked by sourav saharan on Apr 27, 2024
Verified
A portfolio is _________________.
A) A group of assets, such as stocks and bonds, held as a collective unit by an investor.
B) The expected return on a risky asset.
C) The expected return on a collection of risky assets.
D) The variance of returns for a risky asset.
E) The standard deviation of returns for a collection of risky assets.
Portfolio
A collection of financial investments like stocks, bonds, commodities, cash, and cash equivalents, including closed funds and exchange traded funds.
Stocks and Bonds
Equity and debt securities respectively, representing ownership in a corporation and a loan to be repaid by an entity, often with interest.
- Understand the importance of portfolio weights and their influence on the returns and risk associated with a portfolio.
Verified Answer
KD
Kayla DaltonMay 01, 2024
Final Answer :
A
Explanation :
A portfolio refers to a collection of financial assets such as stocks, bonds, commodities, cash, and cash equivalents, including closed-end funds and exchange traded funds (ETFs) held by investors and managed as a single entity with specific investment goals in mind. Choices B, C, D, and E refer to metrics or characteristics used to evaluate the performance or risk of assets, not the definition of a portfolio itself.
Learning Objectives
- Understand the importance of portfolio weights and their influence on the returns and risk associated with a portfolio.