Asset Allocation

February 1, 2026 · 1 min read

Asset Allocation is a finance/economics concept used to analyze decisions, risk, or performance. The key is what changes when it moves up or down-prices, cash flows, risk, or incentives.

Example: You might use Asset Allocation to compare alternatives and choose a plan.

Related terms: Marginal Utility, Marginal Cost, Debt Service Coverage Ratio (DSCR).