Asset allocation should be customized to individual needs and goals from "summary" of All About Asset Allocation, Second Edition by Richard Ferri
Asset allocation is a crucial component of any investment strategy. It involves dividing an investment portfolio among different asset classes such as stocks, bonds, and cash equivalents. The goal of asset allocation is to balance risk and return based on an individual's investment time horizon, risk tolerance, and financial goals. It is important to recognize that everyone's financial situation and goals are unique. Therefore, a one-size-fits-all approach to asset allocation is not effective. Each individual should assess their own needs, goals, and risk tolerance before determining the appropriate asset alloca...
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