__________ Involves Dividing a Portfolio Among Different Classes of Securities

question 57

Multiple Choice

__________ involves dividing a portfolio among different classes of securities in order to preserve the capital by protecting the portfolio against negative market developments. ​

• A)Arbitration
• B)Asset allocation
• C)Portfolio tracking
• D)Estate planning

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Definitions:

Form 1099-INT

A tax form used to report interest income from banks, brokerage firms, and other financial institutions during the tax year.

Form 1040EZ

A simplified federal income tax form for individual taxpayers with straightforward tax situations, no longer in use after the 2018 tax year.

Income Tax Withholding

The process by which employers deduct a portion of employees' wages to pay directly to the government as prepayment for the employees' income tax liabilities.

Tax Liability

The total amount of tax owed by an individual, corporation, or other entity to a taxing authority, after deductions, credits, and exemptions.