related to shares
2007-11-24 20:24:30 · 3 answers · asked by rash 1 in Business & Finance ➔ Other - Business & Finance
Some of each class, stocks, bonds, real estate and in stocks
some of each of large cap, small cap, medium cap and international.
It is like they say not to put all your eggs in one basket.
2007-11-24 20:28:15 · answer #1 · answered by shipwreck 7 · 0⤊ 0⤋
A portfolio where the risks of some items are counterbalanced by the risk of other items. For instance, on average when stocks go down, treasuries go up. If you have both in your portfolio, overall the risk is less.
Another nice but slightly off exampole is owning stocks of an oil company. If the oilprice goes up, you have to pay more for your petrol, but you earn money with your stocks. This way you have hedged yourself against rising oilprices.
2007-11-25 04:29:27 · answer #2 · answered by psychopiet 6 · 0⤊ 0⤋
Halfway between the income and the growth asset allocation models is a compromise known as the balanced portfolio
2007-11-25 04:44:39 · answer #3 · answered by tmuthiah 5 · 0⤊ 0⤋