Asset allocation and diversification insulate a portfolio so it cannot lose money in weak stock markets.

Name: Asset allocation and diversification insulate a portfolio so it cannot lose money in weak stock markets.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Asset allocation and diversification can reduce the risk of losses in a weak stock market, but they cannot completely insulate a portfolio from losses. Economic and market factors can still impact the overall performance of a portfolio.

Asset Allocation and Diversification Insulate a Portfolio So It Cannot