The complete portfolio refers to the investment in ________.
A) the risk-free asset
B) the risky portfolio
C) the risk-free asset and the risky portfolio combined
D) the risky portfolio and the index

Question

Quizplus · Accepted Answer

The complete portfolio is the combination of the risk-free asset and the risky portfolio. By investing in both, an investor can attain a desired level of risk and return based on their personal preferences and risk tolerance. Diversifying across both assets can also reduce overall portfolio risk. Therefore, the best choice is C.

The Complete Portfolio Refers to the Investment in ________