The Advantages of Asset Allocation Include All of the Following

question 105

Multiple Choice

The advantages of asset allocation include all of the following except:

• A)It lessens risk for the investment program.
• B)It helps avoid the pitfall of putting all your eggs in one basket.
• C)It uses different asset classes to provide a measure of safety.
• D)It helps offset a loss in one investment with gains in other investments.
• E)It is extremely difficult to find the right mix of asset classes.

---

Definitions:

Situational Attribution

Refers to attributing an individual's behavior to external or environmental factors.

Undependable

Not reliable or trustworthy; likely to fail or disappoint.

Fundamental Attribution Error

The tendency to overemphasize personal characteristics and underestimate situational factors when explaining others' behaviors.

Overemphasized

To give too much importance or emphasis to something, potentially skewing perspective or interpretation.