Question

Which of the following is TRUE regarding investment intermediaries? Group of answer choices Insurance companies can be both "buy side" and "sell side" institutions Investment bank s fund their assets primarily by selling shares A diversified portfolio of securities offers lower risk than a portfolio with investments that are concentrated in a few stocks or industries Commercial banks intermediate between Investors and Markets Investment banks have higher assets under management than Mutual Funds

Answer 1

Answer:

A diversified portfolio of securities offers lower risk than a portfolio with investments that are concentrated in a few stocks or industries TRUE, A DIVERSIFIED PORTFOLIO WILL REDUCE RISK THROUGH DIVERSIFICATION, WHILE CONCENTRATION OF A FEW STOCKS INCREASES RISK.  

the other statements are false:

• Insurance companies can be both "buy side" and "sell side" institutions. FALSE
• Investment banks fund their assets primarily by selling shares FALSE
• Commercial banks intermediate between Investors and Markets FALSE
• Investment banks have higher assets under management than Mutual Funds FALSE