If the Markets Are Efficient, Then Why Is Asset Allocation

Multiple Choice

If the markets are efficient, then why is asset allocation still considered important?

A) because the risk-return relationship must still be considered
B) because market timing is critical in efficient markets
C) because individual security selection is the key to the markets being efficient
D) because asset allocation combines market timing with individual security selection
E) because the majority of market gains tend to occur only over long periods of time