Asset Allocation Is the Process of Dividing Money Across Financial

question 10

Multiple Choice

Asset allocation is the process of dividing money across financial assets that include all of the following, except

• A) stocks.
• B) bonds.
• C) mutual funds.
• D) All of the above can be used for asset allocation.

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Definitions:

Shares

Units of ownership interest in a corporation or financial asset, providing an equal distribution in any profits, if any are declared, in the form of dividends.

Trades

The act of buying, selling, or exchanging financial instruments, commodities, or other tangible or intangible items between parties.

Dividends

Payments made by a corporation to its shareholders, often derived from the company's profits, and distributed on a regular basis.

Earnings

The amount of profit that a company produces over a specific time period, typically reported as net income.