Answered

One aspect of investing is taking risks in the pursuit of greater returns on those investments. Keeping in mind the knowledge you gained from this week's video on risk, return, and financial securities, consider what types of investments appeal to you and why.

Assume that you were given $100,000 to invest in financial assets, and discuss the following:

1. Explain what your investment portfolio would look like.
2. Share what you believe is your risk tolerance.
3. Consider your peers' responses, and explain the reasons you would (or would not) take on risk when investing.



Answer :

GinnyAnswer

Final answer:

Diversification is crucial to managing risk in investment portfolios, combining various assets like stocks and bonds can optimize returns while minimizing risk.


Explanation:

Investment Portfolio Strategy and Risk Management

Diversification is key in building an investment portfolio to reduce risk. By investing in a mix of assets like stocks, bonds, and mutual funds, you spread risk and maximize returns.

When creating a $100,000 portfolio, consider your risk tolerance. A moderate risk profile might include a blend of stocks and bonds, balancing potential returns with risk.

Remember, diversification helps mitigate the impact of a single asset's poor performance, leading to more stable and potentially higher overall portfolio growth.


Learn more about Investment Portfolios and Risk Management here:

https://brainly.com/question/32993570


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