Ace the GACE 2025 – Transform Your Teaching Dreams into Reality!

Question: 1 / 400

Which of the investors has the portfolio that is exposed to the greatest amount of risk?

Investor A

To determine which investor has the portfolio exposed to the greatest amount of risk, it's important to consider various factors that contribute to portfolio risk, such as the types of assets held, their volatility, diversification, and overall market trends.

If Investor A is identified as having the greatest amount of risk, it may indicate that this investor has a portfolio concentrated in high-volatility stocks, lacks diversification by investing heavily in a single sector or type of asset, or holds assets that are sensitive to market fluctuations. Such characteristics lead to greater exposure to downturns in the market and, consequently, higher risk.

In assessing the risk levels of the other investors, they might have diversified portfolios with a mix of asset types and lower volatility investments, which would reduce their overall risk exposure. This distinction highlights why Investor A's portfolio stands out in terms of risk exposure.

Get further explanation with Examzify DeepDiveBeta

Investor B

Investor C

Investor D

Next Question

Report this question

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy