What is the proportion of investments in each investment alternative referred to as?

Question

Quizplus · Accepted Answer

The proportion of investments in each investment alternative is referred to as asset allocation. This is the process of diversifying an investment portfolio across different asset classes such as stocks, bonds, and cash equivalents to meet an investor's financial goals and risk tolerance level. Proper asset allocation is a critical component of successful investing because it helps to spread risk and optimize returns.

What Is the Proportion of Investments in Each Investment Alternative