What Is the Primary Goal of Asset Allocation

question 56

Multiple Choice

What is the primary goal of asset allocation?

• A)Investment income
• B)Growth
• C)Liquidity
• D)Return
• E)Risk reduction

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Definitions:

Margin Call

A demand by a broker for an investor to deposit additional funds or securities to maintain the required minimum margin account balance.

Short Sale

A transaction where an investor borrows a security and sells it on the open market, planning to buy it back later at a lower price.

Maintenance Margin

The minimum amount of equity that must be maintained in a margin account after a purchase has been made, to continuing holding the position.

Secondary Markets

Markets where investors buy and sell securities or assets from other investors, rather than from issuing companies directly.