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Define the following terms: A- portfolio B- Diversification C- Correlation D- Beta

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Finance

Define the following terms:

A- portfolio
B- Diversification
C- Correlation
D- Beta

Answer & Explanation Solved by verified expert
3.6 Ratings (336 Votes)
A Portfolio Aportfolio is a group of different financial assets like mutualfunds stocks bonds derivatives etc that are held by investorsPortfolios are constructed with an objective to manage risks asputting all the money on a single stock can be very riskyB Diversification When aportfolio consists of financial assets such that their returns arenot correlated or have very    See Answer
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