Asset Allocation Refers to

question 17

Multiple Choice

Asset allocation refers to

• A) choosing which securities to hold based on their valuation.
• B) investing only in "safe" securities.
• C) the allocation of assets into broad asset classes.
• D) bottom-up analysis.

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Definitions:

Employer Identification Number

A unique nine-digit number assigned by the IRS to businesses for purposes of identification and tax reporting.

Internal Revenue Service

The United States government agency responsible for the collection of taxes and enforcement of tax laws.

Local Taxes

Taxes imposed by local governments such as cities and municipalities, which can include property taxes, sales taxes, and income taxes.

Net Pay

The amount of salary or wages that is left after all deductions, such as taxes and social security contributions, have been subtracted.