Getting a grasp of the basics

Welcome to Introduction to Portfolio Analysis! In the last video you were given a brief overview of some of the key concepts in portfolio analysis. The goal of every investor is to make profits while limiting the amount of risk involved. Investors create strategies to reduce these risks.

Which of the following is true about investment:

Answer the question

50 XP

Possible Answers

Portfolios that consist of very different assets are poorly diversified.
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Portfolios that consist of very different assets are diversified.
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Investors reduce risk by investing in a fewer number of assets.
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Portfolio strategies cannot be tested.
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