A reason to hold a portfolio of S&P 500 shares is a. Such a portfolio achieves...

A reason to hold a portfolio of S&P 500 shares is

		a. Such a portfolio achieves close to optimal gains from equity diversification
		b. Such a portfolio has returns that approach market returns
		c. Such a portfolio can be easily acquired through mutual funds
		d. All of the above

Solutions

Expert Solution

Option D is correct

Holding S&P 500 shares is just like holding market portfolio, and this portfolio has equity diversification and they can be bought by buying any index mutual fund

jeff jeffy answered 1 year ago

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