________ is the proportion of funds invested in each of several investment alternatives.
A) Spreading
B) Shorting
C) Margin buying
D) Asset allocation

Question

Quizplus · Accepted Answer

Asset allocation refers to the process of dividing an investment portfolio among different asset categories, such as stocks, bonds, and cash. The proportions allocated to each asset category depend on an individual's investment goals, risk tolerance, and time horizon. By diversifying investments across multiple asset classes, investors can reduce the overall risk of their portfolio and potentially improve long-term returns. Spreading (A) can also refer to diversifying investments, but it is not a specific term used in asset allocation. Shorting (B) and margin buying (C) are investment strategies related to trading individual securities, rather than asset allocation.

________ Is the Proportion of Funds Invested in Each of Several