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yosie yosie
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Asset allocation is performed to ________.

▸ protect against significant declines in any one investment vehicle

▸ maximize the returns from any one vehicle

▸ reduce the load that intermediaries charge

▸ maximize the earning potential of a portfolio

▸ maximize the earning potential of an investment vehicle
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Business in Action


Edition: 9th
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flipninjamelflipninjamel
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protect against significant declines in any one investment vehicle

Managing a portfolio to balance potential returns with an acceptable level of risk is known as asset allocation, dividing investments among cash instruments such as money-market mutual funds, income instruments such as government and corporate bonds, and equities (mainly common stock).

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