Research suggests that 90 percent of a portfolio's performance is determined by _________.

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Asset allocation refers to the process of dividing a portfolio among different asset classes to balance risk and reward based on an individual's goals, risk tolerance, and investment horizon. Research suggests that 90 percent of a portfolio's performance is determined by asset allocation, as opposed to market timing (the attempt to buy and sell securities based on predictions of future market movements) or security selection (choosing individual securities within an asset class). Therefore, a well-diversified portfolio with an appropriate asset allocation is often considered to be the most important factor in long-term investment success.

Research Suggests That 90 Percent of a Portfolio's Performance Is