Question

Explain in detail what are the primary variables that influence the risk of a portfolio of assets?

Answer 1

Ans:-A port folio assets is a collection of various assets which include a company assets and household assets.All assets which is used for financial growth is called portfolio asset.Property,shares,vehicles etc are the example of portfolio assets.There are many primary variables that influence the risk of a portfolio assets.some of them are

1.Years of exponential growth-Rapid or exponential growth is the primary factor that influence the risk of portfolio assets.Here chosing number of years to start an investment is the essential factor.

2.The amount of money deposited is a risk factor of a portfolio assets.

3.Asset allocation-Asset allocation is another risk factor.Division of portfolio in to different asset class is called asset allocation.

4.The amout of taxes pay-keep amout of investment tax low always is a risky factor.

5.The portfolio rate of return is not always high return .It is the another risk factor.