__________ in the process of asset allocation.
A)Deriving the efficient portfolio frontier is a step
B)Specifying asset classes to be included in the portfolio is a step
C)Specifying the capital market expectations is a step
D)All of the above are steps
E)None of the above is a step in the asset allocation process.

Question

Quizplus · Accepted Answer

All the options listed are steps in the asset allocation process.

- Deriving the efficient portfolio frontier is a step which involves identifying the optimal combination of assets that can help achieve a given level of expected return at the minimum level of risk.
- Specifying asset classes to be included in the portfolio is a step that involves determining the types of assets that should be included in the portfolio in order to achieve a desired asset allocation.
- Specifying the capital market expectations is a step that involves estimating the expected returns and risks of each asset class in the portfolio based on macroeconomic factors and market trends.

Therefore, all of the options listed are steps in the asset allocation process.

__________ in the Process of Asset Allocation