Choosing which types of assets you will invest in is known as _____.A.diversificationB.a long-term strategyC.cash investmentD.asset allocationSUBMITarrow_backPREVIOUS
Question
Choosing which types of assets you will invest in is known as _____.A.diversificationB.a long-term strategyC.cash investmentD.asset allocationSUBMITarrow_backPREVIOUS
Solution
The answer is D. asset allocation. This term refers to the strategy of balancing risk and reward by apportioning a portfolio's assets according to an individual's goals, risk tolerance, and investment horizon.
Similar Questions
True or False QuestionTrue or false: Asset allocation or diversification is the process of spreading your assets among several different types of investments.True false question.TrueFalse
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WHAT DOES IT MEAN TO DIVERSIFY YOUR PORTFOLIO? A. To invest all your money in one stock or industry. B. To invest in different asset classes and industries to minimize investment risk. C. To invest in one stock or industry to maximize profits. D. To only invest in the top performing stocks in the market.
Long-term investments such as real estate and retirement savings represent _____.A.nonliquid assetsB.liquid assetsC.net worthD.cash flowSUBMITarrow_backPREVIOUS
Explain what it means to diversify by asset class.
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