You invest 60 percent of your money in stocks and 40 percent of your money in bonds. Your investments are all in mutual funds. You have a(n) _____ asset allocation strategy and a(n) _____ security selection strategy.

Question

Quizplus · Accepted Answer

The asset allocation strategy is passive because it follows a fixed allocation between stocks and bonds. The security selection strategy is also passive because the investments are in mutual funds, which are typically managed by fund managers rather than actively selected by the investor.

You Invest 60 Percent of Your Money in Stocks and 40