Which of the Following Asset Allocation Strategies Subjects You to Relatively

question 86

Multiple Choice

Which of the following asset allocation strategies subjects you to relatively high risk and high return?

• A) 60% U.S. stocks, 30% real estate, 10% stocks in developing counties
• B) 20% large U.S. stocks, 20% small U.S. stocks, 40% bonds, 20% CDs
• C) 50% bonds, 25% CDs, 25% large U.S. stocks
• D) 25% large U.S. stocks, 25% CDs, 10% real estate, 40% bonds

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Definitions:

Antitrust Law

Legislation aimed at preventing anti-competitive practices, monopolies, and fostering fair competition in the market.

Product Price

The financial cost at which a good or service is sold to consumers in the market.

Deregulation

The removal of most or even all of the government regulation and laws designed to supervise an industry. Sometimes undertaken to combat regulatory capture.

Industrial Regulation

Government policies aimed at regulating the operations of industries to prevent unfair practices and ensure competition.