The Third Step of the Portfolio Management Process Is to Construct

question 6

True/False

The third step of the portfolio management process is to construct the portfolio.

---

Definitions:

Specific Asset

A distinct item of property owned by a person or company, regarded as having value and available to meet debts, commitments, or legacies.

Specific Price

This term refers to the exact price of a particular item or security at a specified time.

Put Option

A put option is a financial contract giving the owner the right, but not the obligation, to sell a specified amount of an underlying asset at a set price within a specified time.

Call Option

An agreement in finance which allows the purchaser to have the option, but not the commitment, to purchase a certain amount of a specific asset at a pre-agreed price during a fixed period.