The term complete portfolio refers to a portfolio consisting of ________.
A) the risk-free asset combined with at least one risky asset
B) the market portfolio combined with the minimum-variance portfolio
C) securities from domestic markets combined with securities from foreign markets
D) common stocks combined with bonds

Question

Quizplus · Accepted Answer

A complete portfolio is a combination of the risk-free asset and at least one risky asset. This combination allows the investor to achieve any desired level of risk and return by choosing the appropriate mix of the two assets. The other options do not necessarily make up a complete portfolio.

The Term Complete Portfolio Refers to a Portfolio Consisting of ________