As an investment advisor, a client of yours is willing to accept the risk of inv

Question

As an investment advisor, a client of yours is willing to accept the risk of investing in stocks, but wishes to purchase a portfolio of stocks which would at least minimize that risk. Over time, which of the following would likely be the better portfolio for the client? A. A portfolio that is relatively balanced with stocks of all risk levels, including relatively high risk, high return stocks, plus some money market securities. B. Primarily low and average return stocks, so as to form the global minimum variance portfolio.

Explanation / Answer

A. A portfolio that is relatively balanced with stocks of all risk levels, including relatively high risk, high return stocks, plus some money market securities.

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