Economy, asked by meshacklattimore, 7 months ago

Explain the term asset allocation and security selection. Use examples to distinguish the two

Answers

Answered by yashwanth2146

1

Answer:

Asset allocation determines the mix of assets held in a portfolio, while security selection is the process of identifying individual securities. Asset allocation aims to build a portfolio of non-correlating assets together based on risk and return, minimizing portfolio risk while maximizing returns.

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