Question

question 4 of 6
ben is interested in diversifying his portfolio. he wants to be able to easily manage many investment types at once, but does not want to pay high fees. which investment type is best for ben?
select a response.

• individual stocks and bonds
• multiple cash equivalents
• exchange traded fund(etf)
• mutual fund

Explanation:

To determine the best investment for Ben, we analyze each option:

• Individual stocks and bonds: Managing many of these is time - consuming and may have transaction fees, not meeting Ben's need for easy management and low fees.
• Multiple cash equivalents: Cash equivalents are low - return and don't offer much diversification across different investment types.
• Exchange Traded Fund (ETF): ETFs provide diversification across many assets, are easy to manage (traded like stocks), and typically have lower fees compared to some other investment vehicles.
• Mutual Fund: While mutual funds offer diversification, they often have higher expense ratios and may have sales loads, and are not as easy to trade as ETFs.

So, ETFs match Ben's requirements of easy management of many investment types and low fees.

Answer:

C. Exchange Traded Fund(ETF)