Single choice9)A large proportion of investment performance is mostly a function of:Security selectionInvestment manager selectionAsset allocation
Question
Single choice9)A large proportion of investment performance is mostly a function of:Security selectionInvestment manager selectionAsset allocation
Solution
The correct answer is Asset allocation. This is because the way you distribute your investments among different asset classes (such as stocks, bonds, and cash) has a significant impact on your returns and risk levels. This is more influential on the overall performance of your investment portfolio than the specific securities you choose or the particular investment manager you hire.
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