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Basic Question 5 of 10

Asset allocation is based on the belief that ______

A. the market timing of individual securities is the best method of asset investing.
B. diversification is of benefit only to those who can afford an entire portfolio that matches the market.
C. the total return of a portfolio is influenced more by the selection of asset classes than by the selection of actual investments.
D. technical analysis is a more important and credible theory than fundamental analysis.

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Colin Sampaleanu

Colin Sampaleanu

Learning Outcome Statements

explain the specification of asset classes in relation to asset allocation

describe the principles of portfolio construction and the role of asset allocation in relation to the IPS

CFA® 2024 Level I Curriculum, Volume 6, Module 4.