Multiple choice

Asset allocation of a portfolio should be re-evaluated every time, there is change in the

  1. family size and requirements

  2. market condition

  3. job of the investor

  4. all of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Asset allocation is not a one-time decision - it must align with your current financial situation and capacity. When your family size grows (or shrinks), your financial obligations change significantly. Similarly, job changes affect your income stability and risk profile. Market conditions also matter - a bull market might require rebalancing to maintain your target allocation. All these factors warrant re-evaluation.

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