Which of the Following Is a Typical Asset Allocation Strategy

question 80

Multiple Choice

Which of the following is a typical asset allocation strategy?

• A) 85% stocks, 10% bonds, and 5% highly liquid assets.
• B) 10% stocks, 10% bonds, and 80% highly liquid assets.
• C) 100% stocks.
• D) 25% stocks, 60% bonds, and 15% highly liquid assets.

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Definitions:

Annualized Yield

The yearly return on an investment, expressed as a percentage, accounting for compounding interest.

Maturity

The specified time in the future when the principal amount of a financial instrument, such as a bond, becomes due and is repaid to the investor.

Bonds

Fixed-income investments representing loans made by an investor to a borrower, typically corporate or governmental.