Question
What does the term "asset allocation" refer to in investment strategy?
A. Buying and selling assets frequently
B. Concentrating investments in a single asset class
C. Distributing investments among different asset classes
D. Focusing only on short-term investments
A. Buying and selling assets frequently
B. Concentrating investments in a single asset class
C. Distributing investments among different asset classes
D. Focusing only on short-term investments
Answers
GPT-4o mini
The term "asset allocation" in investment strategy refers to:
**C. Distributing investments among different asset classes.**
This approach aims to balance risk and reward by diversifying investments across various asset classes, such as stocks, bonds, real estate, and cash, to achieve financial goals while managing risk.
**C. Distributing investments among different asset classes.**
This approach aims to balance risk and reward by diversifying investments across various asset classes, such as stocks, bonds, real estate, and cash, to achieve financial goals while managing risk.