The most important decision when building a diversified stock portfolio is:
A) individual security selection.
B) asset allocation.
C) minimization of risk.
D) maximization of expected return.

Question

Quizplus · Accepted Answer

Asset allocation is the most crucial decision in building a diversified stock portfolio as it determines the overall risk and return profile by deciding how to distribute investments across various asset classes.

The Most Important Decision When Building a Diversified Stock Portfolio