The advantages of asset allocation include all of the following except:
A)It lessens risk for the investment program.
B)It helps avoid the pitfall of putting all your eggs in one basket.
C)It uses different asset classes to provide a measure of safety.
D)It helps offset a loss in one investment with gains in other investments.
E)It is viewed as a tool that can reduce the risk associated with short-term investment programs.

Question

Quizplus · Accepted Answer

Asset allocation is not viewed as a tool that can reduce the risk associated with short-term investment programs. In fact, short-term investment programs are generally not suitable for asset allocation strategies as they focus on immediate returns rather than long-term diversification.

The Advantages of Asset Allocation Include All of the Following