In general,as a person includes fewer stocks and more bonds in his portfolio,
A)both risk and expected return rise.
B)risk rises but expected return falls.
C)risk falls,but expected return rises.
D)both risk and expected return fall.

Question

Quizplus · Accepted Answer

As a person includes more bonds and fewer stocks in their portfolio, both risk and expected return typically decrease because bonds are generally considered safer investments with lower returns compared to stocks.

In General,as a Person Includes Fewer Stocks and More Bonds