At Westonci.ca, we provide clear, reliable answers to all your questions. Join our vibrant community and get the solutions you need. Our platform provides a seamless experience for finding precise answers from a network of experienced professionals. Connect with a community of professionals ready to provide precise solutions to your questions quickly and accurately.

What is the difference between asset allocation and diversification

Sagot :

Answer:

Asset allocation refers to the percentage of stocks, bonds, and cash in your portfolio. In contrast, diversification describes the spreading of your assets across the various asset classes within each of those three allocation buckets to further reduce risk.

Explanation: