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kow [346]
3 years ago
12

If an investor possesses a portfolio heavily concentrated in Certificates of Deposit, a financial advisor would most likely sugg

est which of the following aggressive investments to diversify the portfolio?A. A money market accountB. An Individual Retirement AccountC. BondsD. Futures
Business
1 answer:
Triss [41]3 years ago
7 0

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.

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Triss [41]

Explanation:

  • It is the amount of profit gained by the organization by selling the stock, bond or other real estates.
  • If the value of selling price is higher than the cost price then it means that the capital gain is achieved.
  • The gain amount is calculated by subtracting the higher selling price with the lowest cost price
  • Example of capital assets are: mutual fund, stock, house, land, etc
  • If you achieve a capital gain, then you need to pay tax for it.
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abruzzese [7]

Answer:

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This is very true for supply of an authentic painting in auctions, where there may only be 1 single painting, and people state the highest price they are willing to pay for the painting. Regardless of the price, there will only be 1 authentic painting for that price.

Hope this helps! :)
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