Asset allocation should focus on
A) the investor's financial and family situation.
B) selection of individual securities within an asset class.
C) maximization of current income.
D) maximization of short-term profits.

Question

Quizplus · Accepted Answer

Asset allocation is primarily concerned with creating a balanced portfolio that reflects the investor's financial situation, goals, and risk tolerance. It involves distributing investments across various asset classes (like stocks, bonds, and cash) rather than focusing on selecting individual securities, maximizing current income, or short-term profits.

Asset Allocation Should Focus on