Question

(Diversifying Portfolios MC)


Investment Portfolio 1 Portfolio 2 Portfolio 3
Stock in Large, Old Corporation $2,200 $400 $1,800
Stock in Emerging Company $1,200 $5,500 $600
U.S. Treasury Bond $3,500 $1,200 $1,100
Junk Bond $1,300 $3,000 $500
Certificate of Deposit $4,200 $600 $1,700


Which of the following shows the portfolios' levels of risk from lowest to highest?
Portfolio 3, portfolio 2, portfolio 1
Portfolio 1, portfolio 3, portfolio 2
Portfolio 2, portfolio 1, portfolio 3
Portfolio 2, portfolio 3, portfolio 1

Answer 1

a