Answered

Which element beer describes a portfolio that is optimized for income
investment?
A The goal of asset allocation is to protect capital and avoid risk
B. Assets are primerly nonmonetary and sold later in life
OG.
C.
Assets are chosen for maximum shot fem liquidity
OB Astalation priorists that pay dividends or internat



Answer :

GinnyAnswer

Final answer:

Asset allocation involves selecting income-generating assets and utilizing hedging strategies to manage risk and ensure stable returns.


Explanation:

Asset allocation involves spreading investments across various financial assets to maximize profit while minimizing risk. When aiming for an income-focused portfolio, assets are selected based on their ability to provide a consistent income stream, such as prioritizing assets that pay dividends.

Hedging strategies can also be utilized to ensure a stable return amidst market volatility, offering a way to manage risk and maintain income levels. Furthermore, diversification across sectors and asset classes is recommended by asset managers to promote growth and reduce performance volatility.


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