Asset allocation affects the investor's return by______________.
A. altering the returns on individual assets
B. weighting the portfolio return by the allocation
C. assuring diversification
D. increasing the investor's use of mutual funds
Answer: Option B
Solution (By Examveda Team)
Asset allocation affects the investor's return by weighting the portfolio return by the allocation. Asset allocation is an investment strategy that aims to balance risk and reward by apportioning a portfolio's assets according to an individual's goals, risk tolerance and investment horizon.This Question Belongs to Commerce >> Financial Management
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