__________ in the process of asset allocation.
A)Deriving the efficient portfolio frontier is a step
B)Specifying asset classes to be included in the portfolio is a step
C)Specifying the capital market expectations is a step
D)All of the options are steps.

Question

Quizplus · Accepted Answer

All of the options listed are important steps in the process of asset allocation. Deriving the efficient portfolio frontier helps to identify the optimal portfolio for a given level of risk, specifying asset classes helps to diversify the portfolio and manage risk, and specifying the capital market expectations helps to inform investment decisions and set realistic return targets.

__________ in the Process of Asset Allocation