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Holding only one or two risky assets in a portfolio suggests that: I am able to

ID: 2721349 • Letter: H

Question

Holding only one or two risky assets in a portfolio suggests that:

I am able to consistently outperform the market.

I hold a well diversified portfolio.

I am taking more risk, but am getting more return.

I am a sucker for taking risk without getting paid for it.

I am a wise investor.

a.

I am able to consistently outperform the market.

b.

I hold a well diversified portfolio.

c.

I am taking more risk, but am getting more return.

d.

I am a sucker for taking risk without getting paid for it.

e.

I am a wise investor.

Explanation / Answer

I hold a well diversified portfolio.

Since in every portfolio there should be some risky assets and some non risky assets.

b.

I hold a well diversified portfolio.

Since in every portfolio there should be some risky assets and some non risky assets.

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