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Basic Question 1 of 10

Which of the following statements reflects the importance of the asset allocation decision to the investment process? The asset allocation decision ______

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.

User Contributed Comments 2

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soarer1 Asset Allocation is a significant factor to a portfolio's returns
kingirm all could be true...
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I am happy to say that I passed! Your study notes certainly helped prepare me for what was the most difficult exam I had ever taken.
Andrea Schildbach

Andrea Schildbach

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® 2025 Level I Curriculum, Volume 6, Module 4.