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TOEIC Reading 5 Exercisee 417

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Question: 
O:8:"stdClass":2:{s:8:"question";s:127:"The general consensus suggests that a ______ portfolio should have investments including stocks, bonds, cash, and real estate.";s:7:"choices";a:4:{i:0;s:12:"prerequisite";i:1;s:10:"consistent";i:2;s:11:"diversified";i:3;s:6:"mutual";}}
Answer: 
c
TOEIC Reading 5 Category: 
content access: 
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answer explanation: 

<p>The general consensus suggests that a <strong>diversified</strong> portfolio should have investments including stocks, bonds, cash, and real estate.</p><div data-answer="c"><p>The word that best fits the blank in the sentence is <strong>diversified</strong>. This is because a diversified portfolio refers to a portfolio that is well-balanced and contains a variety of different types of investments.</p><p>(A) "Prerequisite" does not fit the context of the sentence. A prerequisite is something that is required or necessary before something else can happen, but it does not describe the type of portfolio that should have a variety of investments.</p><p>(B) "Consistent" does not fit the context of the sentence. While consistency is important in investing, it does not specifically refer to the variety of investments in a portfolio.</p><p>(C) "Diversified" is the correct answer. A diversified portfolio refers to a portfolio that contains a variety of different types of investments to reduce risk and increase potential returns.</p><p>(D) "Mutual" does not fit the context of the sentence. "Mutual" typically refers to mutual funds, which are a type of investment vehicle, but it does not describe the overall characteristics of a portfolio.</p></div>