Question

8. Asset allocation affects the investors return by
(A) altering the return on individual assets
(B) weighting the portfolio return by the allocation
(C) assuring diversification
(D) increasing the investor's use of mutual funds​

Answer 1

Answer:

Asset allocation affects the investor's return by weighting the portfolio return by the allocation. Asset allocation is an investment strategy that aims to balance risk and reward by apportioning a portfolio's assets according to an individual's goals, risk tolerance and investment horizon.