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:

Landlord's Consent

Landlord's consent is the approval a landlord must give for certain actions by the tenant, such as alterations to the property or subletting.

Majority Rule

A decision-making process in which the preferences or votes of more than half of the members of a group determine the outcome.

Minority Rule

A governance structure or situation where a smaller segment of the population holds disproportionate power or authority over the majority.

Illegal Possession

Holding or controlling property or substances in violation of the law.