W7: Investors

















Investors are concerned with holding an optimal portfolio. Consider the choices an investor can make. How will the portfolio choices differ for a conservative investor? What about an aggressive investor? Which type of investor would you most likely identify with?








EBSCOhost
Answered Same DayNov 29, 2022

Answer To: EBSCOhost

Prince answered on Nov 29 2022
41 Votes
A portfolio should be diversified, according to investors. Investing in a wide range of companies lowers the risk of capital loss due to a company's failure. By offsetting the negative returns through one market with good returns in the other, diversification helps the portfolio to increase in terms of a rising market. By examining the link between various industries and making investments accordingly, risk can be reduced through diversification as well. For instance, profits from investments in the aviation sector may be high when oil prices are low, while earnings from investments in the oil sector may be low at the same time, lowering...
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