Deciding to Allocate Investment Funds | CFA® Level 1: CFA® Level 1 Test Prep

Deciding to Allocate Investment Funds

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Question

The third step of the three-step, top-down approach to valuation is to decide to allocate investment funds

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A. B. C. D.

D

The third step of the three-step, top-down approach is the analysis (for purposes of allocating investment funds) of individual companies and stocks. The decision of types of securities to invest in is made in the first step, and the decision to focus on certain industries is made in the second step.