You are a financial adviser. Your client, Archie, wants professional management of his investments but also wants a diversified portfolio. Which of the following investments is right for Archie?

Question

Quizplus · Accepted Answer

A mutual fund is a diversified investment option that pools money from many investors to purchase a variety of stocks, bonds, or other securities. This provides Archie with professional management and a diversified portfolio that spreads the risk across multiple investments. Large corporation stocks may lack diversity, while small corporation stocks and corporate bonds carry higher risk and do not provide diversification on their own.

You Are a Financial Adviser