Opeyemi is discussing his investment strategy with a friend. The friend tells Opeyemi to review his portfolio to ensure he has options he can convert to cash in the event of an emergency. Which of the factors that make up an investor's profile does this best represent?
A) liquidity
B) risk
C) asset allocation
D) available funds
E) speculation

Question

Quizplus · Accepted Answer

Liquidity refers to how quickly and easily an investment can be converted into cash without significant loss in value, which is exactly what Opeyemi's friend is advising him to consider in his investment strategy for emergency situations.

Opeyemi Is Discussing His Investment Strategy with a Friend