When looking at Asset Classes….
An asset class is a group of investments that have similar characteristics, are subject to the same laws and regulations, and generally respond similarly to market fluctuations.
Assets selection in portfolio management
The asset selection decision can be an active one, where the investor attempts to buy undervalued assets in each asset class (or sell overvalued ones) or a passive one, where the investor invests across assets in an asset class, without attempting to make judgments on under or over valuation
