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Which statement(s) accurately describes asset allocation and security selection? Asset allocation involves determining the proportion to invest in each asset class. Asset allocation, or top-down

  1. Which statement(s) accurately describes asset allocation and security selection?

    1. Asset allocation involves determining the proportion to invest in each asset class.

    2. Asset allocation, or top-down portfolio construction, is the appropriate method only if you believe markets are efficient and seek a passive investment approach.

      1. Both I and II

      2. II only

      3. Neither I nor II

      4. I only

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