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Asset Allocation, under the parent category of Investment Strategy in Business Finance Books, refers to the distribution of investments across various asset classes, such as stocks, bonds, and cash, in order to balance risk and reward. It involves determining the optimal mix of assets based on an individual's or organization's financial goals, risk tolerance, and time horizon. The process often includes diversification, which is spreading investments across different types of assets to minimize risk and maximize returns. By strategically allocating assets, investors can create a well-balanced portfolio that aligns with their financial objectives and mitigates potential losses from market volatility.