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Security selection refers to the ________.
A) allocation of the investment portfolio across broad asset classes
B) analysis of the value of securities
C) choice of specific securities within each asset class
D) top-down method of investing
Security Selection
The process of choosing individual securities for investment with the aim of achieving a portfolio's investment goals.
Investment Portfolio
An assortment of monetary assets, including shares, bonds, commodities, money, and near-money instruments such as mutual funds and exchange-traded funds (ETFs).
Asset Classes
Categories of assets with similar characteristics and behavior in the marketplace, such as stocks, bonds, real estate, and cash.
- Clarify the strategy of diversifying resources across different asset types and the methodology for selecting specific securities.
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Learning Objectives
- Clarify the strategy of diversifying resources across different asset types and the methodology for selecting specific securities.
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