Question

Asset allocation involves desgining a portfilo that

Answer 1

Answer:

Asset Allocation 101. Asset allocation involves dividing an investment portfolio among different asset categories, such as stocks, bonds, and cash. The process of determining which mix of assets to hold in your portfolio is a very personal one.

Answer 2

Explanation:

AART believes that economic fundamentals provide the backdrop for asset markets, influencing corporate earnings, interest rates, inflation, and many other factors that affect the returns of stocks, bonds, and other asset classes. Our framework begins with the premise that long-term historical averages provide a reasonable baseline for portfolio allocations. However, over shorter time horizons—30 years or less—asset price fluctuations are driven by a confluence of various short-, intermediate-, and long-term factors that may cause performance to deviate significantly from long-term historical averages.