What is included in an investment portfolio?

An investment portfolio is defined as a collection of various financial assets that an individual or institution manages in order to achieve specific financial goals. This collection typically includes a diverse range of asset classes such as stocks, bonds, mutual funds, real estate, and other investments. The purpose of having a multi-faceted portfolio is to spread risk and capitalize on different investment opportunities, ultimately aiming for a balanced approach to achieving returns.

In contrast, the other options are more limited in scope. Stocks traded on the stock market, government bonds, and a single type of investment do not encompass the full spectrum of diversification that an investment portfolio can provide. Diversification is crucial in portfolio management as it helps mitigate risks associated with market volatility by not relying solely on one type of asset or investment strategy.