The process of constructing
portfolio comprising of various
group of assets is called
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•What Is a Portfolio?
A portfolio is a collection of financial investments like stocks, bonds, commodities, cash, and cash equivalents, including closed-end funds and exchange traded funds (ETFs). People generally believe that stocks, bonds, and cash comprise the core of a portfolio. Though this is often the case, it does not need to be the rule. A portfolio may contain a wide range of assets including real estate, art, and private investments.
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You may think of an investment portfolio as a pie that's been divided into pieces of varying wedge-shaped sizes, each piece representing a different asset class and/or type of investment. Investors aim to construct a well-diversified portfolio to achieve a risk-return portfolio allocation that is appropriate for their level of risk tolerance. Although stocks, bonds, and cash are generally viewed as a portfolio's core building blocks, you may grow a portfolio with many different types of assets—including real estate, gold stocks, various types of bonds, paintings, and other art collectibles.
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