Asset Allocation Affects the Investor's Return by

question 2

Multiple Choice

Asset allocation affects the investor's return by

• A) altering the returns on individual assets
• B) weighting the portfolio returns by the allocation
• C) assuring diversification
• D) increasing the investor's use of mutual funds

---

Definitions:

Empirically Established

Information or theories that are confirmed or supported by observation, experiment, or other forms of scientific research.

Generalizability

The extent to which findings from a study can be applied or extended to broader populations, settings, or times.

Independent Variable

In research, a variable that is manipulated or changed to observe its effects on a dependent variable.

Levels Of Education

The classification of educational attainment as determined by the amount and type of schooling a person has completed, ranging from primary to tertiary education.