Question

If an investor possesses a portfolio heavily concentrated in futures, a financial advisor would most likely suggest adding which conservative investment to diversify the portfolio?

a. Certificates of deposit
b. Futures
c. Stocks

Answer 1

The answer is Certificates of Deposits

Answer 2

a. Certificates of deposit

Step-by-step explanation:

Certificates of deposit are savings certificates that have a fixed maturity rate and a specified fixed interest rate. This certificate can be issued in any denomination aside from minimum investment requirements. This is most likely what a financial advisor would suggest in order to diversify the portfolio. Certificates of deposit are usually issued by commercial banks.