Investments 12th Edition By Zvi Bodie,
Alex Kane, Alan Marcus (All Chapters,
100% Original Verified, A+ Grade)
Asset Allocation - -ANSWER--- process by which capital is
allocated to specific asset classes
- the basis is principle of diversification and Modern portfolio
theory
- these decisions depend on the investor objectives, risk
tolerance, and time horizon
Equities - -ANSWER--- historically, stocks have had the greatest
risk and highest returns of the major asset classes
- stocks offer significant growth, but their volatility can make them
a very risky investment in the short term
Liquid Funds - -ANSWER--- funds that invest in securities with a
residual maturity of 91 days or less
- popularity grew in the aftermath of the financial crisis where
investors wanted funds that they could enter and exit in a
relatively
- do not carry and guarantee