Asset Allocation Represents an Attempt by Individuals or Portfolio Managers

question 22

Multiple Choice

Asset allocation represents an attempt by individuals or portfolio managers to determine what

• A)Percentage of assets should be distributed to beneficiaries
• B)Mutual funds are appropriate for investment based on risk and return
• C)Percent of funds under management should be invested in stocks,bonds,etc
• D)Brokerage houses best meet their needs

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Definitions:

Liquidating Dividend

A type of dividend paid by a company from its capital rather than its earnings, often during dissolution or winding down.

Date of Record

The cut-off date set by a company in order to determine which shareholders are eligible to receive a dividend or distribution.

Earnings Per Share

Earnings per share (EPS) is a financial metric that represents the portion of a company's profit allocated to each outstanding share of common stock, indicating the company's profitability.

Excess Cash

The amount of cash holdings that exceed the normal operational needs of a company.