A portfolio will usually contain:
A) one riskless asset.
B) one risky asset.
C) two or more assets.
D) no assets.
E) None of these.

Question

Quizplus · Accepted Answer

A portfolio is a collection of two or more assets. It is important to have multiple assets in a portfolio to diversify the risk and increase the potential for return. Including both risky and riskless assets can also help balance out the overall risk and return of the portfolio. Therefore, Choice C is the best choice as it acknowledges the need for multiple assets in a portfolio.

A Portfolio Will Usually Contain