Asset allocation may involve
A) the decision as to the allocation between a risk-free asset and a risky asset.
B) the decision as to the allocation among different risky assets.
C) considerable security analysis.
D) the decision as to the allocation between a risk-free asset and a risky asset and the decision as to the allocation among different risky assets.
E) the decision as to the allocation between a risk-free asset and a risky asset and considerable security analysis.

Question

Quizplus · Accepted Answer

Asset allocation involves both the decision on the mix between risk-free and risky assets, and the allocation among various risky assets to diversify and manage risk.

Asset Allocation May Involve