Asset allocation refers to
A) choosing which securities to hold based on their valuation.
B) investing only in "safe" securities.
C) the allocation of assets into broad asset classes.
D) bottom-up analysis.

Question

Quizplus · Accepted Answer

Asset allocation involves distributing investments among different categories of assets, such as stocks, bonds, and cash, to optimize the balance between risk and return. This strategy does not focus on individual security selection (A), investing solely in "safe" securities (B), or bottom-up analysis (D), which involves analyzing individual stocks or securities.

Asset Allocation Refers to