Your asset allocation decision should not consider
A) your stage in life.
B) your degree of risk tolerance.
C) your expectations of economic conditions.
D) past economic conditions.

Question

Quizplus · Accepted Answer

Past economic conditions should not be a primary factor in your asset allocation decision because they do not necessarily predict future movements or outcomes in the market. Asset allocation should be based on forward-looking considerations, such as your current life stage, risk tolerance, and expectations of future economic conditions, rather than historical performance.

Your Asset Allocation Decision Should Not Consider