The return a portfolio earns is affected by the allocation of the portfolio's assets.

Question

Quizplus · Accepted Answer

The allocation of a portfolio's assets, such as stocks, bonds, and cash, can have a significant impact on the portfolio's overall return. Different asset classes have different levels of risk and return potential, and an investor's individual risk tolerance and investment goals will determine the appropriate allocation for their portfolio. A well-diversified portfolio with a balanced allocation of assets can help manage risk and potentially improve returns.

The Return a Portfolio Earns Is Affected by the Allocation