Which one of the following best describes a portfolio?
A)investment in a risk-free security
B)security equally as risky as the overall market
C)group of assets held by an investor
D)risky security
E)new issue of stock

Question

Quizplus · Accepted Answer

A portfolio is defined as a group of assets held by an investor, which can include stocks, bonds, real estate, and other investments. It is a way for investors to diversify their holdings to manage risk and potentially increase returns over time. Option A is incorrect because a risk-free security would not be considered a portfolio. Option B is incorrect because a security equally as risky as the overall market does not describe a portfolio but rather a benchmark. Option D is incorrect because a risky security is not necessarily a portfolio. Option E is incorrect because a new issue of stock is just one type of investment and does not describe a portfolio as a whole.

Which One of the Following Best Describes a Portfolio