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Example investment portfolio with a diverse asset allocation. Asset allocation is the implementation of an investment strategy that attempts to balance risk versus reward by adjusting the percentage of each asset in an investment portfolio according to the investor's risk tolerance, goals and investment time frame. [1]
An asset allocation is a financial road map that shows you where to put your money based on your own investment objectives, risk tolerance and time horizon. ... as explained below, ...
Today's term: asset allocation. In the most basic sense, asset allocation is simply how one's assets are divided among different asset classes, such as cash, stocks, bonds, real estate, and so on ...
Asset allocation is the value added by under-weighting cash [(10% − 30%) × (1% benchmark return for cash)], and over-weighting equities [(90% − 70%) × (3% benchmark return for equities)]. The total value added by asset allocation was 0.40%. Stock selection is the value added by decisions within each sector of the portfolio.
Traditional portfolio rebalancing simply means returning your asset allocation to its original model. Imagine, for example, that you design a portfolio in line with your investment objectives that ...
Asset allocation is the decision faced by an investor who must choose how to allocate their portfolio across a number of asset classes. For example, a globally invested pension fund must choose how much to allocate to each major country or region.