The collections of financial instruments that each have returns defined by a probability distribution and used to obtain a combined investment with expected risks and returns are called:
A)folders.
B)portfolios.
C)archives.
D)probability investments.

Question

Quizplus · Accepted Answer

A portfolio is a collection of financial instruments such as stocks, bonds, and cash equivalents, with the objective of combining their risks and returns. It is constructed by an investor or a fund manager in a way that optimizes the expected return based on the investor's risk tolerance. Therefore, portfolios are the best choice for the described scenario. The other options, folders, archives, and probability investments, do not have a specific financial meaning related to the situation described.

The Collections of Financial Instruments That Each Have Returns Defined