Investors are concerned with holding an optimal portfolio. Consider the choices an investor can make. How will the portfolio choices differ for a conservative investor? What about an aggressive investor? Which type of investor would you most likely identify with?
**Please use below textbook for primary reference.
Ross, S. A., Westerfield, R., Jaffe, J. F., & Jordan, B. D. (2018). Corporate finance: Core principles & applications. New York, NY: McGraw-Hill Education.
SAMPLE SOLUTION
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In any business venture, investors make a lot of calculations in order to choose one opportunity that considers risks but improves returns. While some care less about the risk involved in establishing a venture, others do a delicate balance between the involved risks and the expected return (Agarwal, Mullally, Tang & Yang, 2015). All these scenarios explain well the intention of why optimal portfolio is at times held by investors. In this essay, I consider the probable choices available for an investor, and how those choices are…