Portfolio choices made by financial institutions are affected by which of the following factors?

Question

Quizplus · Accepted Answer

Portfolio choices made by financial institutions are influenced by a variety of factors including the expected rates of return on different investments, the risks associated with different sources and uses of funds, the cost of obtaining funds, and the maturity and volatility of those funds. All these factors play a crucial role in determining how financial institutions allocate their resources across different assets and liabilities.

Portfolio Choices Made by Financial Institutions Are Affected by Which