Question

The term "complete portfolio" refers to a portfolio consisting of _________________.the risk-free asset combined with at least one risky assetthe market portfolio combined with the minimum variance portfoliosecurities from domestic markets combined with securities from foreign marketscommon stocks combined with bonds

Answer 1

Answer: the risk-free asset combined with at least one risky asset

Explanation: In simple words, complete portfolio refers to the portfolio in which some of the risky assets are combined with some of the risk free securities like govt. securities.

It is called complete portfolio because of the safety and completeness it provides to the customer expectations. The risk free asset provides the backup against loss while the risky assets makes the potential for high returns.