Which One of the Following Statements Is Correct Concerning Asset

Multiple Choice

Which one of the following statements is correct concerning asset allocation?

A) Because there is an ideal mix, all investors should use the same asset allocation for their portfolios.
B) The minimum variance portfolio will have a 50/50 asset allocation between stocks and bonds.
C) Asset allocation affects the expected return but not the risk level of a portfolio.
D) There is an ideal asset allocation between stocks and bonds given a specified level of risk.
E) Asset allocation should play a minor role in portfolio construction.