A portfolio constructed to meet an investor's needs should:

The correct choice emphasizes the importance of aligning a portfolio with the investor's expectations of risk. When constructing a portfolio, understanding the expected risks associated with different investments is crucial, as it directly influences the investor's ability to achieve their financial goals while managing their risk tolerance.

This aspect is fundamental because each investor has different risk preferences, which can significantly affect their investment behavior and decisions. A portfolio that takes into account the investor's expected risks allows for a tailored approach that aims to balance potential return against the acceptable level of risk. By understanding these expectations, an investor is better prepared to navigate market fluctuations and ensure their portfolio remains aligned with their long-term objectives.

In contrast, including all available asset classes, seeking to earn a higher return than the market, or merely diversifying across multiple sectors does not guarantee that the portfolio will meet the investor's specific needs. While those factors can contribute to a robust investment strategy, they do not inherently address the individual's risk-following expectations that ultimately guide successful portfolio management.