An investment adviser has decided to purchase gold, real estate, stocks, and bonds in equal amounts. This decision reflects which part of the investment process?

Question

Quizplus · Accepted Answer

This decision reflects the asset allocation phase of the investment process, which involves determining the optimal mix of asset classes to achieve a particular level of return for a given level of risk. Allocating equal amounts to gold, real estate, stocks, and bonds demonstrates a balanced approach that seeks to diversify risk across multiple asset classes.

An Investment Adviser Has Decided to Purchase Gold, Real Estate