Name three types of investments that can make up a portfolio. What wi
QUESTION
Name three types of investments that can make up a portfolio.
What will be an ideal response?
ANSWER
(1) Stocks are a small slice of ownership in a company. (2) Bonds are a loan to a company and are more secure than stock. (3) Mutual funds are organizations that collect investors’ money, pool it, and buy a variety of stocks and bonds. Mutual funds provide diversification of risk.
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