An investment adviser has decided to purchase gold, real estate, stocks, and bonds in equal amounts. This decision reflects which part of the investment process?

A) asset allocation
B) investment analysis
C) portfolio analysis
D) security selection

Asset Allocation

The investment strategy of dividing a portfolio among different asset categories, such as stocks, bonds, and cash to minimize risk and maximize returns.

Investment Adviser

A person or organization that makes investment recommendations or conducts securities analysis in return for a fee, whether through direct management of client assets or through written publications.

Investment Process

A systematic approach or series of steps taken by investors or fund managers to identify, select, and allocate funds to various securities or investments to achieve specific financial goals.