Question

If an investor possesses a portfolio heavily concentrated in Certificates of Deposit, a financial advisor would most likely suggest which of the following aggressive investments to diversify the portfolio?A. A money market accountB. An Individual Retirement AccountC. BondsD. Futures

Answer 1

Answer:

D. Futures

Explanation:

If an investor possesses a portfolio heavily concentrated in Certificates of Deposit, a financial advisor will most likely suggest "Futures" aggressive investments to diversify the portfolio. Certificates of deposit hold savings certificates that have a fixed maturity rate furthermore a defined fixed interest rate. This certificate can be claimed in any value aside from merest investment provisions. A futures agreement grants you the freedom to acquire a specific commodity either financial instrument toward a succeeding date, and thou consent to hold that agreement.