Which of the following is the best deﬁnition of portfolio?
A) Percentage of a portfolio's total value in a particular asset.
B) Group of assets such as stocks and bonds held by an investor.
C) The difference between the return on a risky investment and a risk-free investment
D) Return on a risky asset expected in the future.
E) Equation of the SML showing the relationship between expected return and beta.

Question

Quizplus · Accepted Answer

A portfolio refers to a group of assets such as stocks, bonds, and other investments, that are held by an investor. It may be diversified with a mix of investments to meet the investor's financial goals and risk tolerance.

Which of the Following Is the Best Deﬁnition of Portfolio