- CFA Exams
- CFA Level I Exam
- Topic 9. Portfolio Management
- Learning Module 4. Basics of Portfolio Planning and Construction
- Subject 4. Asset Allocation and 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... |