Why is asset allocation important for an investor?

What will be an ideal response?


Asset allocation involves structuring a portfolio so that an investor has substantial holdings in many asset classes such as stocks, bonds, mutual funds, real estate, and savings accounts, among others. A major decline in one asset class may be offset by a rise in another asset class. Studies have shown that most of an investment portfolio's performance is determined by the allocation of its assets, not by the selection of individual investments or how well a person has timed his or her buying and selling of the investments.

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The "spread" is a bank's profit margin on foreign exchange trading and equals the difference between the bid rate and the offer rate.

a. True b. False

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Leading teams in almost any context includes three main activities: ______ the team, ______ team members, and ______ team norms. Each has an enhanced aspect when the context is global.

What will be an ideal response?

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"Buy one, get one free" is a ________ sales promotion.

A. rebate B. coupon C. sweepstake D. deal E. sample

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The licensing of real estate agents is an example of an area of federal regulation

Indicate whether the statement is true or false

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