Part 1/9:
Understanding Asset Allocation: Balancing Risk and Return
Choosing the right asset allocation is one of the most pivotal decisions an investor can make. This entails determining the mix between riskier assets like stocks, safer investments such as bonds, and other financial instruments. The question of how much risk to take and the definition of risk itself is essential in shaping your expected investment returns. Ben Felix, the Chief Investment Officer at PWL Capital, breaks down the intricacies of selecting an optimal asset allocation in his discussion.