The manner in which an investor spreads his portfolio across a variety of securities is called
A) The efficient frontier
B) Correlation
C) Minimization
D) Asset allocation
E) The investment opportunity set

Question

Quizplus · Accepted Answer

Asset allocation refers to the process of diversifying an investor's portfolio by spreading investments across a range of asset classes, such as stocks, bonds, and cash. This strategy helps to minimize risk and optimize returns by allocating capital across different types of investments that are not highly correlated with one another.

The Manner in Which an Investor Spreads His Portfolio Across