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BIBLIOGRAPHY

Asset Allocation and Diversification

U.S. Securities and Exchange Commission, Investor.gov

Claims Supported by This Source

  1. Asset allocation is a personal decision determined by investment time horizon and risk tolerance, and it changes at different stages of life.
  2. Diversification is spreading money among different investments to reduce risk. It is summarized by the phrase "Don't put all your eggs in one basket."
  3. Diversification is enhanced by spreading investments not only across different asset classes but also among multiple securities and industries within the same class.
  4. Even if you own mutual funds or ETFs, it may not be diversified if their focus is narrow; it is necessary to check their top holdings.

How to read the verification levels. 'Read' means the material was read in its entirety. 'Bibliography and abstract confirmed' means the bibliographic information and abstract were verified. 'Via course material' means the source was referenced through the main text of a book or a country's monetary history. The text hash is the SHA-256 of the main text from the original source page, excluding tags and whitespace, used to detect if the material has been altered.