Money in Real Life · 45 sec
Asset allocation
A practical idea for making clearer everyday money decisions.
The useful idea
- The useful idea
Asset allocation is the implementation of an investment strategy that attempts to balance risk versus reward by adjusting the percentage of each asset in an investment portfolio according to the
- How it works
investor's risk tolerance, goals and investment time frame.
- Why it matters
The focus is on the characteristics of the overall portfolio.
Why this matters
Use Asset allocation to compare the trade-offs before committing money.
Try this
Use Asset allocation to compare the trade-offs before committing money.
Test your recall
Which idea belongs to the explanation of Asset allocation?
- How it works
- The useful idea — correct
- Why it matters
Asset allocation is the implementation of an investment strategy that attempts to balance risk versus reward by adjusting the percentage of each asset in an investment portfolio according to the
General education only — not personal financial advice.