Which of the following statements reflects the reason Tom's portfolio assets exceed Jane's?

• A. Jane's liabilities are higher
• B. Tom's Portfolio Assets are More than Jane's Portfolio Assets
• C. Tom has fewer withdrawals
• D. Jane's assets are misvalued

Answer: (B)

When you compare portfolio assets, you’re looking at the value of the investments each person holds. If Tom’s portfolio assets exceed Jane’s, the simplest and most direct explanation is that Tom simply has a larger asset total. The other factors don’t directly explain why the asset total is higher: liabilities affect net worth, withdrawals can affect cash in the portfolio but don’t state why one asset total is bigger, and misvaluation would imply an error rather than a real difference in asset values.