American Academy Of Financial Management (AAFM) Chartered Wealth Manager (CWM) Exam

What is asset allocation and why is it considered the most important investment decision?

Dividing investments among asset classes (stocks, bonds, cash, alternatives) — research shows it determines about 90% of return variability Buying only one type of investment Allocating assets equally regardless of goals Only investing in the best-performing asset class

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Dividing investments among asset classes (stocks, bonds, cash, alternatives) — research shows it determines about 90% of return variability

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