Portfolio management involves making decisions in order to
A)buy low and sell high.
B)maximize risk and return.
C)accept risk.
D)own stocks in bear markets.
E)meet your investment needs and objectives.

Question

Quizplus · Accepted Answer

Portfolio management is not solely about buying low and selling high or maximizing risk and return. It is about creating a diversified portfolio that meets your investment needs and objectives, whether that be generating income or achieving long-term growth. Accepting risk is also a part of portfolio management, but it is not the primary goal. Owning stocks in bear markets may be a strategy for some investors, but it is not applicable to all situations. Therefore, the best choice is E, which encompasses the wider range of objectives of portfolio management.

Portfolio Management Involves Making Decisions in Order to