Asset allocation is
A) the process of dividing funds into asset classes.
B) concerned with returns variability.
C) concerned with the risk associated with different assets.
D) concerned with the relationship among investments' returns.
E) All of these are correct.

Question

Quizplus · Accepted Answer

All of the options listed are correct. Asset allocation involves dividing funds into different asset classes, such as stocks, bonds, and cash, and considering the returns variability, risk, and relationship among investments' returns in order to create a diversified and balanced investment portfolio.

Asset Allocation Is