Asset Allocation Is The

question 1

Multiple Choice

Asset allocation is the:

• A)selection of specific securities within a particular class or industry.
• B)division of a purchase price between a cash payment and a margin loan.
• C)division of a portfolio into short and long positions.
• D)distribution of investment funds among various broad asset classes.
• E)dividing of assets into those that are hypothecated and those that are not.

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Definitions:

Memory Span

The number of items, usually words or numbers, that a person can retain and recall in correct order.

Memory Span

The capacity to hold a small amount of information in mind in an active, readily available state for a short period.

Short-Term Memory

An ability to hold a small volume of information in a state that is both active and easily accessible for a limited time.

Encoding

The process by which information is transformed into a format that can be stored in memory, an initial step in memory formation.