What Is the Purpose of Asset Allocation

question 65

Multiple Choice

What is the purpose of asset allocation?

• A) to reduce capital gains
• B) to increase investment risk
• C) to reduce broker fees associated with investing
• D) to reduce investment risk

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Definitions:

Principle Of Proximity

A principle in psychology that suggests objects or shapes that are close to one another appear to form groups.

Observational Learning

Learning that occurs through observing and imitating another’s behavior.

Frustration-Aggression Theory

A psychological theory suggesting that the occurrence of aggressive behavior arises from frustration, which is the result of blocked goals or achievement.

Identity Crisis

A period of uncertainty and confusion in which a person's sense of identity becomes insecure, typically due to a change in their expected aims or role in society.