Investment Company Portfolio Dependence

Investment Company Portfolio

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Question

The ________ of an investment company depends on the company's portfolio of stocks.

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A. B. C. D.

D

Share value derives from future dividends and capital gains on each stock within the portfolio. The type, quality and relative quantity of stocks within a portfolio affects the value of the shares of the portfolio.Portfolio composition also affects liquidity and creditworthiness (i.e. bond rating) but much less significantly.