Personal Finance 1st Edition by Jack R. Kapoor

Exercise 8

1 How can asset allocation help you build an investment program to reach your financial goals?

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2 How do the time your investments have to work for you and your age affect your investment program?

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3 Of all the investment alternatives presented in this chapter, which one do you think would help you obtain your investment goals? Explain your answer.

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4 Using the Suze Orman method described on page 459, determine how much of your investments should be growth oriented. Does this seem like a reasonable amount?

Step 1 of 4

Asset allocation is the process of allocation of the assets for different types of investments to understand the risk associated with it. This type of diversification provides safety as well as reduces the risk associated with the investment.