You are trying to build an optimum portfolio for your client. Which combination of mutual funds would be the best:

Question

Quizplus · Accepted Answer

Portfolio diversification is important in reducing risk and obtaining maximum returns. Option B provides a better combination of mutual funds and diversification with 2-3 of each category, including growth, income, international, and balanced funds. Option A only has one of each, which may not provide enough diversification. Option C has only three categories without an international fund, which reduces diversification. Option D only includes growth and income funds, which limits diversification across different types of mutual funds.

You Are Trying to Build an Optimum Portfolio for Your