Asset Allocation Determines 1)the Proportion of a Portfolio That Should Be Held in Be

question 12

Multiple Choice

Asset allocation determines
1) the proportion of a portfolio that should be held in money market securities
2) the distribution of a portfolio between stocks and bonds
3) the allocation of a portfolio among classes of stock

• A) 1 and 2
• B) 1 and 3
• C) 2 and 3
• D) all three

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Definitions:

Voting Stock

Shares that give the holder the right to vote on company matters.

Book Value

The remaining value of a corporation's assets after subtracting its debts, as noted in the balance sheet.

Equity Method

An accounting technique used for recording investments in associate companies, where the investment is initially recorded at cost and adjusted thereafter for the post-acquisition change in the investor's share of the investee's net assets.

Equipment Account

An account on the balance sheet that represents the current value of the equipment owned by a company after adjusting for depreciation and amortization.