Asset Allocation Model users take all of the following steps in constructing a portfolio except:

Question

Quizplus · Accepted Answer

The other three options (determining risk tolerance, analyzing market conditions, and determining allocation of funds among major asset classes) are all steps that Asset Allocation Model users take in constructing a portfolio. However, waiting for a temporary market reversal to obtain better pricing is not a necessary step as it relies on timing the market, which is generally not recommended for long-term investors.

Asset Allocation Model Users Take All of the Following Steps