The objective of asset allocation is to
A) make investment decisions easier.
B) ensure the returns of the individual investments within a portfolio.
C) achieve a desired return on investment and eliminate the adverse risk of investing.
D) achieve a desired return on investment and maintain a tolerable risk level.

Question

Quizplus · Accepted Answer

Asset allocation aims to achieve a desired return on investment while maintaining a tolerable level of risk, rather than eliminating risk entirely, which is practically impossible. It involves distributing investments across various asset classes (like stocks, bonds, and cash) to balance risk and return according to an investor's goals, risk tolerance, and investment horizon.

The Objective of Asset Allocation Is to