________ is the diversification of the portfolio.
A)Asset allocation
B)Laddering
C)Portfolio
D)Savings

Question

Quizplus · Accepted Answer

Asset allocation refers to the process of diversifying a portfolio by allocating funds across different types of assets, such as stocks, bonds, and cash. This helps to decrease the overall risk of the portfolio by reducing the impact of fluctuations in any one type of asset. Laddering refers to a strategy for investing in bonds, so it is not directly related to diversification of a portfolio. Portfolio refers to a collection of investments, but it does not necessarily imply diversification. Savings refer to the act of setting aside funds for future use, which is not directly related to diversification of a portfolio.

________ Is the Diversification of the Portfolio