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Mansi Kahar
on Oct 20, 2024

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The term complete portfolio refers to a portfolio consisting of ________.

A) the risk-free asset combined with at least one risky asset
B) the market portfolio combined with the minimum-variance portfolio
C) securities from domestic markets combined with securities from foreign markets
D) common stocks combined with bonds

Complete Portfolio

A complete portfolio represents a combination of risk-free assets and risky assets, designed to balance potential returns with the investor's risk tolerance.

Risk-Free Asset

An investment that is assumed to have no risk of financial loss, often represented by government bonds or treasury bills.

Risky Asset

An investment that holds a certain degree of risk, possibly leading to loss, such as stocks or commodities.

  • Grasp the concepts of complete portfolio and the capital market line.
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A
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