Which of the following is true of a portfolio?

A) It is usually held by high net worth investors.
B) It is considered diversified only if it contains both stocks and bonds.
C) Its risk and return are different from but based on those of the individual securities in it.
D) It is available to institutional investors and pension funds.

High Net Worth

A term used to describe individuals whose total value of financial assets, excluding their primary residence, is significantly higher than the average, often implying greater financial security and investment capacity.

Diversified

An investment strategy that spreads risk by allocating investments among various financial instruments, industries, and other categories to reduce exposure to any single asset or risk.