__________ 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

---

Definitions:

Insurer

A company or entity that provides financial protection against specified risks in return for premiums.

Disclosure

The act of making new or secret information known.

Concealment

The act of hiding or not disclosing important information intentionally.

Insurable Interest

A principle that requires an individual to have a legitimate financial or emotional stake in the preservation of the subject of insurance to obtain a policy.