The decision on how to divide funds across the major asset classes is referred to as:
A) Dynamic hedging.
B) Insuring the portfolio.
C) Asset allocation decision.
D) Program trading.
E) None of the above.

Question

Quizplus · Accepted Answer

Asset allocation decision refers to the process of deciding how to distribute an investment portfolio across various asset categories, such as stocks, bonds, and cash. This is a fundamental aspect of investment strategy aimed at balancing risk versus reward according to an individual's goals, risk tolerance, and investment horizon.

The Decision on How to Divide Funds Across the Major