Which One of the Following Statements Is Correct Concerning Asset

question 93

Multiple Choice

Which one of the following statements is correct concerning asset allocation?

• A)Because there is an ideal mix, all investors should use the same asset allocation for their portfolios.
• B)The minimum variance portfolio will have a 50/50 asset allocation between stocks and bonds.
• C)Asset allocation affects the expected return but not the risk level of a portfolio.
• D)There is an ideal asset allocation between stocks and bonds given a specified level of risk.
• E)Asset allocation should play a minor role in portfolio construction.

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Definitions:

MyPlate

A visual guide created by the USDA to help Americans understand and follow healthy eating patterns, utilizing a plate divided into portions of fruits, vegetables, grains, proteins, and dairy.

Mediterranean Diet

A dietary pattern traditionally followed in countries bordering the Mediterranean sea, emphasizing fruits, vegetables, whole grains, olive oil, and fish.

Olive Oil

A type of oil extracted from olives, highly praised for its health benefits, including heart-healthy monounsaturated fats.

Dietary Guidelines for Americans

A set of recommendations aimed at promoting healthy eating habits and reducing the risk of diet-related diseases among people in the United States.