Question

Drag the tiles to the correct boxes to complete the pairs.
Match each activity that generates portfolio income to the context in which it is generated.
trading paper assets
stocks
mutual funds
derivative
It is a contract whose value derives from other financial assets.
arrowRight
It represents ownership in a corporation.
arrowRight
It involves buying and selling of stocks, bonds, mutual funds, derivatives, and currencies.
arrowRight
It is a financial investment that pools money from investors to invest in securities.
arrowRight

Answer 1

Here are the correct pairings for the activities that generate portfolio income:

1. **Derivative**: It is a contract whose value derives from other financial assets.
2. **Stocks**: It represents ownership in a corporation.
3. **Trading paper assets**: It involves buying and selling of stocks, bonds, mutual funds, derivatives, and currencies.
4. **Mutual funds**: It is a financial investment that pools money from investors to invest in securities.