Asked by Bradley Tyszkiewicz on Jun 12, 2024
Verified
If an investor wants to invest 100% of her portfolio in safe assets but does not want to manage her portfolio, she should invest in ________.
A) a money market fund
B) a growth stock fund
C) several different money market instruments
D) several different stocks
Money Market Fund
A type of mutual fund that invests in high-quality, short-term debt instruments, cash, and cash equivalents and is considered to be relatively low risk.
Portfolio Management
The art and science of making decisions about investment mix and policy, matching investments to objectives, asset allocation for individuals and institutions, and balancing risk against performance.
Growth Stock Fund
A mutual fund that invests primarily in the stocks of companies believed to have above-average potential for growth in revenue and earnings.
- Understand the components and strategy of asset allocation in an investment portfolio.
Verified Answer
AK
Amarissa KalliongisJun 15, 2024
Final Answer :
A
Explanation :
A money market fund invests in short-term, low-risk debt securities, making it a safe investment option. Additionally, the fund is managed by a professional who handles the portfolio, eliminating the need for the investor to manage her portfolio.
Learning Objectives
- Understand the components and strategy of asset allocation in an investment portfolio.