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Asset Allocation refers to an investment strategy that aims to balance risk and reward by apportioning a portfolio's assets according to an individual's goals, risk tolerance, and investment horizon. It involves distributing investments across various asset classes such as stocks, bonds, cash, real estate, and alternative investments. The primary objective of Asset Allocation is to maximize returns while minimizing risk by diversifying investments and optimizing the balance between potential gains and losses. This strategy requires regular review and adjustment to maintain the desired allocation in response to changing market conditions and investment goals.