What is diversifying among different kinds of assets known as?
A) Portfolio funding
B) Capital asset classification
C) Asset allocation
D) Multi-diversification

Question

Quizplus · Accepted Answer

Diversifying among different kinds of assets is known as asset allocation. This strategy helps to spread risk across different types of assets, such as stocks, bonds, and real estate, to minimize the impact of market fluctuations on the overall portfolio. It is important to note that simply owning multiple assets does not ensure diversification. It is essential to carefully consider the characteristics of each asset and their relationship to one another.

What Is Diversifying Among Different Kinds of Assets Known As