An asset allocation of 50% stocks, 45% bonds, and 5% cash is considered ________ risk.

Name: An asset allocation of 50% stocks, 45% bonds, and 5% cash is considered ________ risk.
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Quizplus · Accepted Answer

A 50% allocation to stocks indicates some willingness to take on risk, but the 45% allocation to bonds provides some stability and income. The small 5% allocation to cash provides liquidity and some downside protection. Therefore, this asset allocation is considered moderate risk.

An Asset Allocation of 50% Stocks, 45% Bonds, and 5