Portfolio Risk & Return
Asset Allocation
How a portfolio is divided among broad kinds of investment — stocks, bonds, cash, commodities such as gold, and so on. The classic example is the 60/40 portfolio: 60% stocks for long-run gains, 40% bonds for stability. Allocation sets the character of a portfolio more than any single holding does; its expected return, its volatility and its behavior in a crash are mostly a consequence of how much sits in each kind of asset. Allocations also drift: after a stock rally a 60/40 mix can quietly become 70/30, carrying more risk than it was built to. Which allocation suits whom depends on goals, time horizon and tolerance for losses, a decision that belongs to each investor.
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Educational information, not investment advice. See it applied across the screener →