Article Writing Homework Help

Write a 3 pages paper on risk management and asset allocation. According to The New York Times (2011), “Asset allocation” describes dividing one’s investments among the various types of asset classes. This is like saying putting one’s eggs in different baskets. Pietersz (2005) observes that asset allocation “helps ensure that investments are spread out across a wide range of markets and securities.” They do so because asset allocation does not have a one-off surety for success – it may either succeed or backfire, depending on who is handling the asset. Grange (2010) relates exposure management to the nature of product being invested in. He recognizes two major products, which are those “made up of those products that start with a balance equal to their limit and where, over time, the balance decreases away from the limit” and those which “start with a zero balance and some higher limit and where, over time, the balance increases towards the limit”. Generally, in the first instance, exposure created is classified as productive whereas in the second instance, all exposure created is classified as unproductive.