Question

If an investor purchases a few shares of McDonald's® stock, but gains no direct involvement with the company, which kind of investment are they

portraying?
O Direct investment
O Portfolio investment
O Indirect investment
O Foreign investment

Answer 1

B.

Step-by-step explanation:

Portfolio investment can be defined as a passive investment made in the form of a group of assets, stocks, bonds, etc. These investments are made with the expectation to earn a return or growth in value.

In the given case, an investor who has purchased a few shares of McDonald's stock is portraying a portfolio investment. A portfolio investment is an asset that a company invests in with an expectation to earn a profit.

Therefore, option B is the correct answer.