Vidyalelo
Commerce · Q776

Financial Management

Graduate and Post Graduate · Commerce · question 776

Q776

In asset portfolio, number of stocks are increased to

A.
reduce return
B.
reduce average
C.
reduce risk
Answer
D.
increase prices

Answer: Option C

Solution

Answer: Option C
Solution:
In asset portfolio, number of stocks are increased to reduce risk. A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds.