Question

quiz
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:

• Individual stocks/bonds: Require managing many individually, high effort, and may have transaction fees. Not good for easy management and low fees.
• Multiple cash equivalents: Cash equivalents (like money market instruments) are low - return and don't diversify well across asset classes.
• Exchange Traded Fund (ETF): ETFs offer diversification (hold many assets), are easy to manage (trade like a stock), and typically have lower fees than mutual funds in many cases, fitting Ben's need for easy management of many investments and low fees.
• Mutual Fund: While they offer diversification, they often have higher expense ratios and some have sales loads, and may be less "easy" to manage in terms of trading flexibility compared to ETFs.

Answer:

C. Exchange Traded Fund (ETF)