You have just recently opened an account with RobinHood(TM) to begin investing in stocks. Given your relatively young age, you decide that an aggressive investment
You have just recently opened an account with RobinHood(TM) to begin investing in stocks. Given your relatively young age, you decide that an aggressive investment portfolio is suitable for your investment objectives. What characteristics might your aggressive stock portfolio have?
Multiple Choice
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You hold a portfolio of many stocks (an exchange traded fund that mirrors the S&P 500 Index). You also hold a sizeable portion of US government treasury bonds and a small percentage of cash to take advantage of buying opportunities.
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You hold well known large cap stocks whose betas are very close to 1.0; you hold many stocks (perhaps an exchange traded fund that mirrors the S&P 500 Index).
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You hold shares in Home Depot only. You calculate the Beta of Home Depot to be 1.09
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Your portfolio is comprised of stocks with Beta's that all exceed 1.0; you hold a large percentage of your total assets in just a few stocks and you hold no cash or bonds.
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