Which of the Following Asset Allocation Strategies Subjects You to Relatively

question 86

Multiple Choice

Which of the following asset allocation strategies subjects you to relatively high risk and high return?

• A) 60% U.S. stocks, 30% real estate, 10% stocks in developing counties
• B) 20% large U.S. stocks, 20% small U.S. stocks, 40% bonds, 20% CDs
• C) 50% bonds, 25% CDs, 25% large U.S. stocks
• D) 25% large U.S. stocks, 25% CDs, 10% real estate, 40% bonds

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Definitions:

More Elastic

Refers to the responsiveness of the quantity demanded or supplied of a good to changes in its price, with more elastic meaning more sensitive to price changes.

Monopolist

A single seller in a market who controls all the sales of a particular product or service, facing no competition.

Higher Price

An elevated cost or valuation of a product or service compared to previous levels.

Market

A place or mechanism where buyers and sellers of goods, services, or resources interact to exchange these commodities at prices determined by supply and demand.