Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

7. Receivables and Investments

Introduction to Investments in Securities

Financial Accounting

7. Receivables and Investments

Introduction to Investments in Securities

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Multiple Choice

The complete portfolio refers to the investment in:

a portfolio consisting solely of equities

only the risk-free asset

both the risk-free asset and the risky portfolio

only the risky portfolio

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Verified step by step guidance

Understand the concept of a complete portfolio: A complete portfolio is a combination of a risk-free asset and a risky portfolio, tailored to an investor's risk tolerance and return objectives.

Recognize the components: The risk-free asset typically represents a guaranteed return (e.g., government bonds), while the risky portfolio consists of equities or other investments with higher risk and potential return.

Analyze the options provided: Evaluate each option to determine which aligns with the definition of a complete portfolio. For example, a portfolio consisting solely of equities or only the risk-free asset does not meet the criteria.

Identify the correct answer: The complete portfolio includes both the risk-free asset and the risky portfolio, as this combination allows for diversification and optimization of risk and return.

Apply this understanding to similar problems: Use the concept of a complete portfolio to analyze investment strategies and asset allocation decisions in financial accounting and portfolio management.