Question
What is the difference between asset allocation and diversification?
A. Asset allocation and diversification are the same.
B. Asset allocation is about risk and diversification is about reward.
• C. Asset allocation is the types of investments you choose, while
diversification is how you spread your investments within each
investment type.
D. Diversification is much more important than asset allocation in an
investment strategy.
Answer
C. Asset allocation is the types of investments you choose, while diversification is how you spread your investments within each investment type.