Question: What is the main difference between an asset index and a portfolio of assets: a . An index is risk - free, a portfolio bears
What is the main difference between an asset index and a portfolio of assets:
a An index is riskfree, a portfolio bears risk.
b An index is a collection of assets that fall into the same category, a
portfolio can be any grouping of investments.
c An index can only be bought from a broker, whereas a portfolio can be
constructed by any individual investor.
d A portfolio is publicly traded on a large stock exchange like NASDAQ, an
index is only privately available
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
