n NISM Certifications
V-A NISM Series V-A
Medium

What does 'Asset Allocation' mean?

Practice question from NISM Series V A - Mock Test 5 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Allocating a portfolio to cash

  2. B

    Allocating various mutual funds to investors

  3. C

    Allocating units to unit holders

  4. Allocating a portfolio to different asset classes

    Correct answer

Why this is the answer

Asset allocation refers to the process of dividing an investment portfolio across different asset classes (e.g., equities, bonds, real estate) to achieve the desired balance of risk and return.

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