Which of the Following Portfolio Construction Methods Starts with Asset

question 18

Multiple Choice

Which of the following portfolio construction methods starts with asset allocation?

• A) Top-down
• B) Bottom-up
• C) Middle-out
• D) Buy and hold
• E) Asset allocation

---

Definitions:

Static Budget

A budget that remains unchanged over a period of time, regardless of changes in factors like sales volume or revenue.

Manager's Effectiveness

It measures how well a manager achieves the goals and objectives of the business through efficient and effective use of resources.

Variable Manufacturing Costs

Costs that change in proportion to the level of production or sales volume, including costs such as raw materials, direct labor, and certain utilities directly involved in the manufacturing process.

Flexible Budget

A flexible budget that adapts to variations in activity levels or volumes, promoting precise budgeting and forecasting.