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Which strategy will increase the asset allocation of your portfolio?

A. Investing in stocks
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B. Investing in stocks, bonds, and a mutual fund
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C. Investing in assets with the highest annual yield
D. Investing in certificates of deposit

Sagot :

Answer:

B. Investing in stocks, bonds, and a mutual fund

Explanation:

The strategy that will increase your portfolio's asset allocation is to invest in stocks, bonds, and mutual funds.

How does diversification balance investments?

Portfolio diversification helps to better distribute risk and maximize profitability, as there are different investments with different behavior in the stock market.

Therefore, portfolio diversification helps to reduce risk and maximize liquidity.

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