The investment strategy that requires the percentage of dollars invested in stocks,bonds,and cash to remain fixed over a long period of time is called
A)the buy-and-hold approach.
B)dollar-cost averaging.
C)asset allocation.
D)portfolio diversification.

Question

Quizplus · Accepted Answer

Asset allocation is a long-term investment strategy that involves dividing an investment portfolio among different asset categories, such as stocks, bonds, and cash, according to an individual's goals, risk tolerance, and investment time frame. The percentages allocated to each category remains fixed over time, which helps to reduce the risk of the portfolio and maximize returns. The other options mentioned are also important investment strategies, but they do not specifically focus on maintaining a fixed allocation over time.

The Investment Strategy That Requires the Percentage of Dollars Invested