Research from the 1970s to the 1990s found that over 90 percent of a fund's returns over time is explained by
A) market timing.
B) stock selection.
C) manager selection.
D) asset allocation.
E) cash allocation.

Question

Quizplus · Accepted Answer

Research from the 1970s to the 1990s found that over 90 percent of a fund's returns over time is explained by asset allocation. This means that the strategic allocation of investments among different asset classes (such as stocks, bonds, and cash) is the most important factor in determining a fund's long-term performance.

Research from the 1970s to the 1990s Found That Over