Should a Person Who Is Risk Averse Hold a Portfolio

question 168

Essay

Should a person who is risk averse hold a portfolio with no stock and only bonds?
Explain.

---

Definitions:

Job Responsibilities

Specific duties, tasks, and roles associated with a particular job that an employee is expected to perform.

Predictable Ways

Actions or patterns of behavior that can be expected based on previous occurrences or established norms.

Mechanistic

Describes an organization structured with clear, rigid procedures and divisions, often likened to a machine in its operation.

Significant Economies

Large-scale benefits or savings achieved through the efficient production or operation scale, often resulting in competitive advantage.