Answered

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Once you’ve done asset allocation, what’s the next level of diversification you should do among each asset class?.

Sagot :

Tundexi

The next level of diversification an investor should do among each asset class is apportioning them according to their risks.

What is a diversification?

A diversification refers to a process of allocating capital in a way that reduces the exposure to any one particular asset or risk.

What is an asset allocation?

An asset allocation refers to an strategy that helps to balance risk and reward by apportioning the assets according to an risk, tolerance etc

In conclusion, the next level of diversification an investor should do among each asset class is apportioning them according to their risks.

Read more about diversification

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