Consider an investment scenario where you will be choosing a portfolio of three stocks from a collection of five semiconductor stocks, four transportation stocks, two pharmaceutical stocks and two retail stocks. If the three stocks are chosen at random, what is the probability that the portfolio will be financially diverse? The investment portfolio will be considered financially diverse if it has at least two different industries represented in the portfolio

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Q: portfolios

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Portfolio Management

Portfolio management is the process by which an investor decides that how the person will invest in a variety of assets in order to get a desired return in the future. A portfolio means a pool of assets that includes securities, bonds, and other investment instruments which helps in risk minimization of the money that has been invested. In other words, it can be said that a portfolio means a combination of assets in which an investor decides to invest their money in order to get a lump sum return in the future or even a series of cash flow that the person is expecting at the end of their job life.