You are a financial adviser. Your client, Nessie, wants a portfolio of assets that consists of a broad market index. Which of the following investments is right for Nessie?

Question

Quizplus · Accepted Answer

An index fund is the best option for Nessie as it is designed to replicate the performance of a specific market index, providing a cost-effective way to gain broad market exposure. Small corporation stocks and large corporation stocks, on the other hand, are more focused on specific sizes of companies and may not provide the same level of diversification as a broad market index. Treasury bills are low-risk investments with short-term maturities, and therefore may not offer the same returns as a broad market index.

You Are a Financial Adviser