An Individual with Only $10,000 to Invest Is Most Likely

question 30

Multiple Choice

An individual with only $10,000 to invest is most likely better off investing in:

• A) Mutual funds to increase the expected return
• B) ETFs to increase the diversification
• C) Individual equities to increase portfolio efficiency
• D) Individual bonds and individual equities to increase efficiency
• E) All of the above are rational choices

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Definitions:

MPs

Members of Parliament, individuals elected to represent constituencies in the legislative body of a parliamentary government.

Wage Rate

The standard amount of compensation paid to employees per unit of time worked, such as an hour or a year.

Firms

Businesses or companies that produce goods or provide services in exchange for monetary profit.

Hired Workers

Individuals employed to perform services or labor for compensation under the direction of an employer.