In: Finance
A reason to hold a portfolio of S&P 500 shares is
a. Such a portfolio achieves close to optimal gains from equity diversification |
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b. Such a portfolio has returns that approach market returns |
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c. Such a portfolio can be easily acquired through mutual funds |
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d. All of the above |
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