teriharris52315
Answered

What is asset allocation?

A. Creating a portfolio of assets that balance risk and reward
B. Putting all your money in one place
C. Choosing to buy only physical assets
D. Evaluating an investment's rate of return



Answer :

GinnyAnswer

Final answer:

Asset allocation involves strategically diversifying investments to balance risk and reward for optimal portfolio management.


Explanation:

Asset allocation is the strategic distribution of investments across various asset classes to balance risk and reward. By diversifying a portfolio with different types of assets like stocks, bonds, and real estate, investors can reduce risk through risk pooling and increase potential returns. This practice is essential in portfolio management to optimize investment performance.


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