Diversified Portfolios

E

If the firm does not have discretion over the asset mix, the segments of the various asset classes, with their respective cash positions, must be included in composites composed of like assets.

Portfolios that include more than one asset class are called "multiple-asset" portfolios.

Asset classes refer to different categories of investment instruments, such as stocks, bonds, real estate, commodities, and cash. An investment portfolio that contains investments from multiple asset classes is known as a multiple-asset portfolio.

Option A, "quasi-asset," is not the correct term for portfolios that include more than one asset class. "Quasi" typically means "resembling but not actually being," and it does not accurately describe the nature of a portfolio containing multiple asset classes.

Option B, "multivariate," is not the correct term in this context. "Multivariate" generally refers to statistical analysis involving multiple variables, and it does not specifically relate to portfolios containing multiple asset classes.

Option C, "multiple leverage," is also not the correct term for portfolios including more than one asset class. "Multiple leverage" refers to situations where an investor or a company employs multiple sources of borrowed funds to finance investments, but it does not pertain to the composition of asset classes within a portfolio.

Option D, "univariate-asset," is not the correct term either. "Univariate" refers to statistical analysis involving a single variable, and it does not accurately describe a portfolio with multiple asset classes.

Therefore, the correct answer is option E, "multiple-asset," as it appropriately describes portfolios that include investments from various asset classes.