™A $10,000 position moving 10% changes by $1,000; asset allocation helps place that movement in the context of the wider portfolio.
Risk & Portfolio
Asset allocation
How a portfolio is divided among asset classes such as stocks, bonds and cash.
Plain-English context
Why it matters
This concept helps describe how one position or behavior can affect the resilience of an entire portfolio.
Assuming Asset allocation removes risk rather than describing or redistributing part of it.
Use current definitions. Product terms, tax treatment and market rules can change. Confirm important details with official disclosures, regulators and regulated providers.