In a Top-Down Analysis of Portfolio Construction

Multiple Choice

In a top-down analysis of portfolio construction

A) decisions about which executives will manage the portfolio are made first,then capital allocation decisions are made.
B) decisions about asset allocation are made first,then specific securities are chosen.
C) decisions about specific securities are made first,then asset allocation decisions are made.
D) all securities transactions must be approved by upper-level management.
E) an investor's first decision would be about how much to hold in her favorite stock.