A Portfolio Is _________________

question 77

Multiple Choice

A portfolio is _________________.

• A) A group of assets, such as stocks and bonds, held as a collective unit by an investor.
• B) The expected return on a risky asset.
• C) The expected return on a collection of risky assets.
• D) The variance of returns for a risky asset.
• E) The standard deviation of returns for a collection of risky assets.

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Definitions:

Cash Dividend

A disbursement from a corporation to its stockholders, typically coming from its earnings.

Net Income

The ultimate earnings of a company, arrived at by reducing its revenues by all incurred expenses and taxes.

Nonvoting Preferred Stock

A type of preferred stock that does not grant the holder voting rights at the corporation’s shareholders' meetings.

Long-Term Investment

Investments in bonds, stocks, or real estate held for an extended period to achieve sustained financial growth or income.