Question: What can be deduced from portfolio A, which is substantially weighted in stocks, whereas portfolio B is weighted evenly between stocks, bonds, and money market
What can be deduced from portfolio A, which is substantially weighted in stocks, whereas portfolio B is weighted evenly between stocks, bonds, and money market funds? It is impossible to deduce which person is more willing to take on risk based on these portfolios. Portfolio A represents a person who is willing to take more risk. Both the portfolios belong to people who are willing to take the same amount of risk. Portfolio Brepresents a person who is willing to take more risk
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