Portfolio Investments Are Those

question 18

Multiple Choice

Portfolio investments are those:

• A)made by a group of investors who pool their money to buy overseas companies.
• B)made by the government of one country in assets in another country
• C)in which investors own and control assets in another country.
• D)in which investors have no role in managing the investment.

---

Definitions:

Asset Allocation

The process of spreading investments among different classes of assets, such as stocks, bonds, and cash to manage risk and achieve investment goals.

Portfolio Construction

The process of selecting the appropriate mix of investments and allocating assets among those investments to achieve specific investment goals.

Secondary Market

A market where investors buy and sell securities or assets from other investors, rather than from the issuing company directly.

Previously Issued

Refers to securities or stocks that have been issued in the past and are currently being traded in secondary markets.