Define and explain the use and advantages of a Investment portfolio. What is the role of a portfolio...

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Define and explain the use and advantages of a Investment portfolio. What is the role of a portfolio in investing? How does this contribute to diversification? When is a portfolio truly diversified?
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Tanmoy · Accepted Answer

Portfolio Investment
Define and explain the use and advantages of an investment portfolio
Portfolio investment is a modern investment method which consists of assets allocation and various diversification process to create a collection of investment. The biggest challenge of investment is uncertainty as there are chances of future losses. Further, the advantages of portfolio investment are to reduce the risk than enhancing return. Secondly over a longer period of time the portfolio investment is able to provide a better than individual investment returns. Thirdly, whatsoever may be the economic situation, portfolio investment can be kept unadjusted. Fourthly,

Define and explain the use and advantages of a Investment portfolio. What is the role of a portfolio in investing? How does this contribute to diversification? When is a portfolio truly diversified?...

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