The proportion of funds invested in various categories of assets,such as money market instruments,long-term debt,stocks,and real estate is referred to as
A) Investment portfolio summation.
B) Asset allocation.
C) Risk tolerance level.
D) Expected return.
E) None of the above.

Question

Quizplus · Accepted Answer

The proportion of funds invested in different asset categories is called asset allocation. This is a critical decision for investors as it determines the risk and return potential of their portfolio. Therefore, it is important to allocate assets based on one's investment goals, risk tolerance, and time horizon.

The Proportion of Funds Invested in Various Categories of Assets,such