What is the difference between asset allocation and diversification

Answers

Answer 1

Answer:

Asset allocation refers to the percentage of stocks, bonds, and cash in your portfolio. In contrast, diversification describes the spreading of your assets across the various asset classes within each of those three allocation buckets to further reduce risk.

Explanation:


Related Questions

A processor's speed is measured in megahertz (MHz), or millions of instructions per second; and gigahertz (GHz), or billions of instructions per second. Which processor is faster?

options:

3.8 GHz


3.8 MHz

Answers

Answer:

3.8 GHz

Explanation:

GHz (gigahertz, or billions of pulses per second).

The faster processor speed can be 3.8 GHz. The first option is correct.

What is speed?

The speed of any moving object is the ratio of the distance covered and the time taken to cover that distance.

A processor's speed is measured in megahertz (MHz), or millions of instructions per second; and gigahertz (GHz), or billions of instructions per second.

The billions of instructions per second is greater than millions of instructions per second.

Thus,  3.8 GHz is faster.

Learn more about speed.

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