The decision on how to divide your portfolio among different types of securities is known as:
A) arbitration
B) asset allocation
C) portfolio tracking
D) estate planning
E) investment planning

Question

Quizplus · Accepted Answer

Asset allocation is the process of dividing your portfolio among different classes of assets, such as stocks, bonds, and cash. This decision is based on your investment goals, risk tolerance, and time horizon. By diversifying your portfolio through asset allocation, you may reduce the overall risk of your investments while increasing potential returns.

The Decision on How to Divide Your Portfolio Among Different