What is Asset Allocation? | SIE, SERIES7, SERIES65 Exam Prep

Asset allocation is an investment strategy that divides a portfolio among different asset classes (stocks, bonds, cash) based on an investor's goals, risk tolerance, and time horizon to optimize risk-adjusted returns. 📚 Learn more about Asset Allocation and other key terms for your SIE, SERIES7, SERIES65 exam at Open Exam Prep. 🎯 This term appears on: SIE, SERIES7, SERIES65 🔗 Full glossary: https://www.open-exam-prep.com/glossary 🔗 Asset Allocation definition: https://www.open-exam-prep.com/glossary/asset-allocation 💡 Exam Tip: Asset allocation = dividing portfolio among asset classes. Most important factor in long-term returns. Strategic = long-term targets; Tactical = short-term adjustments. --- #securities #examprep #financeexam #sie #series7 #series65