Question

20 multiple choice 1 point
which of the following best explains how asset allocation is different from diversification in terms of mitigating risk within a portfolio?
○ asset allocation is regularly investing equal amounts at regular intervals whereas diversification is investing a large sum of money all at once.
○ asset allocation is the amount of time you have to invest whereas diversification is spreading your bets over a short period of time
○ asset allocation is buying stocks within stocks whereas diversification is focusing on one particular company
○ asset allocation is the percentage of stocks, bonds, and cash in your portfolio whereas diversification is dividing your money within asset classes
21 fill in the blank 6 points
rather than trying to time the market, elsy decides to invest using dollar - cost averaging. below is her 6 - month report:

month	investment	price per share	shares purchased
february	$100	$7	14.3
march	$100	$8	12.5

Explanation:

Answer:

asset allocation is the percentage of stocks, bonds, and cash in your portfolio whereas diversification is dividing your money within asset classes