Cretia Robritti discovered that the purpose of asset allocation is to ensure that the investor is ________,generally with holdings in several different ________ of investments.
A)protected;denominations
B)well diversified;amounts
C)well diversified;classes
D)evenly distributed;classes
E)evenly distributed;amounts

Question

Quizplus · Accepted Answer

Asset allocation aims to diversify the investor's portfolio by having holdings in several different classes of investments, such as stocks, bonds, and real estate. The purpose is to minimize the risk and achieve a well-diversified portfolio, which can lead to better returns and protection against market fluctuations. Therefore, option C, "well diversified; classes," is the most appropriate choice.

Cretia Robritti Discovered That the Purpose of Asset Allocation Is