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:

Historical Data

Past records or data points that are used for analysis or forecasting future trends.

Total Return

Total return is the overall return on an investment, including dividends, capital gains, and interest, over a specific period.

Dividend Income

Income received from owning shares of a company, distributed out of the company's profits.

Capital Gain

The profit that results from a disposition of a capital asset, such as stock, bond, or real estate, where the sale price exceeds the purchase price.