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:

Cultural Environment

The communications, religion, values and ideologies, education, and social structure of a country

Social Organization

The structured arrangement of relationships and roles within a society, contributing to its orderly functioning and cultural practices.

Politics

Politics refers to the activities associated with governance of a country or area, especially the debate among individuals or parties having power.