- CFA Exams
- CFA Level I Exam
- Topic 9. Portfolio Management
- Learning Module 64. Basics of Portfolio Planning and Construction
- Subject 4. Portfolio Construction
CFA Practice Question
Which of the following statements reflects the importance of the asset allocation decision to the investment process? The asset allocation decision ______
B. identifies the specific securities to include in a portfolio.
C. determines most of the portfolio's returns and volatility over time.
D. creates a standard by which to establish an appropriate investment time horizon.
A. helps the investor decide on realistic investment goals.
B. identifies the specific securities to include in a portfolio.
C. determines most of the portfolio's returns and volatility over time.
D. creates a standard by which to establish an appropriate investment time horizon.
Correct Answer: C
User Contributed Comments 2
| User | Comment |
|---|---|
| soarer1 | Asset Allocation is a significant factor to a portfolio's returns |
| kingirm | all could be true... |