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As a way to triumph over the rate of inflation, the expense portfolio should get a better amount of return, which generally will subject the portfolio to several risks. Running these portfolio pitfalls is most often attained making use of asset allocation, which seeks to diversify expenditure hazard and possibility. This asset allocation will prescribe a percentage allocation to get invested in stocks (possibly chosen inventory or frequent stock), bonds (such as mutual bonds or government bonds, or company bonds), cash and different investments. The allocation should also take into consideration the personal hazard profile of each investor, considering the fact that risk attitudes vary from person to person.
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