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is the most important investment decision because it determines the risk-return...

This question belongs to Commerce Financial Management
Financial Management
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__________ is the most important investment decision because it determines the risk-return characteristics of the portfolio.

Answer & Solution
Correct Answer: Option D
Asset allocation is the most important investment decision because it determines the risk-return characteristics of the portfolio. 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.
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