When constructing a portfolio,it is a good idea to concentrate in one or two securities,and then monitor the performance closely.

Question

Quizplus · Accepted Answer

It is not a good idea to concentrate in one or two securities as it increases the risk of loss. It is recommended to diversify the portfolio by investing in multiple securities across different sectors and asset classes to mitigate risk. Additionally, monitoring the performance of the portfolio as a whole is more important than focusing on individual securities.

When Constructing a Portfolio,it Is a Good Idea to Concentrate