Cretia Robritti Discovered That the Purpose of Asset Allocation Is

question 167

Multiple Choice

Cretia Robritti discovered that the purpose of asset allocation is to ensure that the investor is ________,generally with holdings in several different ________ of investments.

• A)protected;denominations
• B)well diversified;amounts
• C)well diversified;classes
• D)evenly distributed;classes
• E)evenly distributed;amounts

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Definitions:

Break-Even Point

The financial point at which costs equal income, with no net loss or gain.

ROI

Return on Investment; a financial metric used to evaluate the efficiency or profitability of an investment or compare the efficiency of several investments.

Promotion Expenditures

Funds allocated by a business to carry out promotional activities aimed at boosting sales and enhancing brand visibility.

Promotion-to-Expenses Ratio

A metric analyzing the relationship between the amount spent on promotional activities and the overall expenditure of a business.