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A typical diversified portfolio in ludes a mixture of ________? (select all that are appropriate)ETF’sStockBonds

Question

A typical diversified portfolio includes a mixture of ________? (select all that are appropriate)

  • ETF’s
  • Stock
  • Bonds
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Solution

A typical diversified portfolio typically includes a mixture of the following:

  1. ETFs (Exchange-Traded Funds): These are investment funds that are traded on stock exchanges. ETFs can provide exposure to a wide range of asset classes, including stocks, bonds, and commodities.

  2. Stocks: Equity investments in individual companies. Stocks represent ownership in a business, and including them in a portfolio can offer growth potential.

  3. Bonds: Fixed-income securities that represent loans made by an investor to a borrower (typically corporate or governmental). Bonds are generally considered safer investments compared to stocks and provide regular interest payments.

In summary, a well-rounded and diversified portfolio would typically contain ETFs, stocks, and bonds, as this mix can help manage risk and enhance returns over time.

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