Final answer:
The portfolio of the investor who actively monitors stock prices, current events, and company actions is likely to perform better, whereas the portfolio of the investor who does not may underperform due to missed opportunities and increased risk.
Step-by-step explanation:
The question relates to investment strategies and portfolio performance in the context of personal financial planning. If you, as a diligent investor, are actively monitoring your investments, tracking various aspects like stock prices, current events, and the actions taken by the companies, your portfolio is likely to perform better.
This approach enables you to make informed decisions, adjusting your investments in response to market changes and potentially enhancing your returns.
Conversely, if your friend selects companies randomly without regard for financial news or company performance, their portfolio might underperform. The lack of attention can lead to missed opportunities for buying low, selling high, or avoiding losses. Moreover, without monitoring, your friend will not be able to react to the market changes promptly.
Ultimately, the active investment approach you take can lead to a well-maintained and potentially more profitable portfolio, whereas passive or uninformed strategies like your friend's may lead to suboptimal performance and increased risk.