Which of the following asset allocation strategies subjects you to relatively high risk and high return?
A) 60% U.S. stocks, 30% real estate, 10% stocks in developing counties
B) 20% large U.S. stocks, 20% small U.S. stocks, 40% bonds, 20% CDs
C) 50% bonds, 25% CDs, 25% large U.S. stocks
D) 25% large U.S. stocks, 25% CDs, 10% real estate, 40% bonds

Question

Quizplus · Accepted Answer

Option A involves a significant allocation to stocks (including those in developing countries) and real estate, which are generally considered higher risk and potentially higher return investments compared to bonds and CDs.

Which of the Following Asset Allocation Strategies Subjects You to Relatively