Definition
Technique to get the best of a risk/reward tradeoff by dividing investments among different alternatives. A firm has to decide, for example, which products to manufacture, whether to buy or lease a machine, or how much to invest in an advertising campaign. Similarly, an individual is faced with the choice of putting savings in stocks (shares), bonds, precious metals, real estate, etc. In all such cases, the strategy to allocate funds is based on balancing the investor's objectives regarding income with the corresponding risks.
Business Tips
Wealthy Investors vs. Wealthy Entrepreneurs
There are more entrepreneurs than investors on the Forbes list of wealthiest people, but that doesn't mean entrepreneurship is necessarily a better wealth builder than investing. There's a selection b ... Read more
Related Videos
http://www.businessdictionary.com/definition/asset-allocation.html
