Most returns earned are derived from owning the right asset categories rather than specific investments.

Question

Quizplus · Accepted Answer

Studies have shown that the majority of investment returns come from owning the appropriate asset categories, such as stocks, bonds, or real estate, rather than individual investments within those categories. This is known as asset allocation. By diversifying across different types of assets, investors can potentially reduce risk and increase their chances of achieving their long-term financial goals.

Most Returns Earned Are Derived from Owning the Right Asset