The two main components of an investment strategy of a managed fund are:

A) top-down selection and asset allocation
B) stock selection and asset allocation
C) hedging and stock selection
D) none of these choices

Question

The two main components of an investment strategy of a managed fund are:

A) top-down selection and asset allocation
B) stock selection and asset allocation
C) hedging and stock selection
D) none of these choices

Quizplus · Accepted Answer

There are two main components of the investment strategy of a managed fund.These are the asset allocation and stock selection decisions.Asset allocation refers to how the portfolio is spread across classes of assets,such as equities,fixed interest,cash and property.Stock selection refers to the selection of individual securities within each asset class.

The Two Main Components of an Investment Strategy of a Managed