Asked by Kalin Williams on May 16, 2024
Verified
Which of the following is the best definition of portfolio?
A) Percentage of a portfolio's total value in a particular asset.
B) Group of assets such as stocks and bonds held by an investor.
C) The difference between the return on a risky investment and a risk-free investment
D) Return on a risky asset expected in the future.
E) Equation of the SML showing the relationship between expected return and beta.
Portfolio
A variety of investment assets including but not limited to stocks, bonds, commodities, and liquidity, with mutual funds and ETFs included.
Stocks and Bonds
Financial instruments where stocks represent ownership equity in a company and bonds are debt securities issued to investors.
Group of Assets
A collection of different assets held by an individual or entity that can include stocks, bonds, real estate, and more.
- Gain insight into the critical role of portfolio weights in determining the risk and returns of a portfolio.
Verified Answer
AB
Aaron BrownMay 21, 2024
Final Answer :
B
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.
Learning Objectives
- Gain insight into the critical role of portfolio weights in determining the risk and returns of a portfolio.