The determination of which individual stocks to purchase within a particular asset class is referred to as:
A)security selection.
B)asset allocation.
C)security analysis.
D)market timing.
E)market selection.

Question

Quizplus · Accepted Answer

Security selection refers to the process of identifying specific stocks or securities to purchase within a particular asset class, based on factors such as company financials, industry trends, and other fundamental and technical analysis. Asset allocation, in contrast, refers to the allocation of funds across different asset classes, while security analysis is a broader term that encompasses both security selection and other forms of analysis, such as risk assessment and valuation. Market timing and market selection refer to broader market-based strategies rather than individual security selection.

The Determination of Which Individual Stocks to Purchase Within a Particular