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    Exam 8: Portfolio Selection
  5. Question
    Academic Research Shows Asset Allocation Decisions Explain Approximately 90% of the Variation
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Academic Research Shows Asset Allocation Decisions Explain Approximately 90% of the Variation

Question 17

Question 17

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Academic research shows asset allocation decisions explain approximately 90% of the variation in returns in a portfolio,whereas individual security analysis,including "stock picking," explains only about 10%.

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