passage below require analyis and breakdown

Looking at my own retirement portfolio, I have a mix of stocks, bonds, and mutual funds. Asset allocation refers to the process of determining how to allocate investment funds across a variety of asset classes such as stocks, bonds, mutual funds, real estate, and cash. Portfolio models are used to determine the percentage of investment funds that should be made in each asset class. The goal is to create a portfolio that provides the best balance between risk and return (Anderson et al., 2016, p. 552). If I were to choose a model, I would probably go for a conservative model.

If I were to develop a model to evaluate where to put my money, I would have to assess my level of comfort with high risk and conservative investment strategies. Risk is minimized by diversification, so I think even though I carry some higher-risk investments in my portfolio, I counter-balance this with diversity. The text also stresses that there is no guarantee that a given investment will perform as predicted, so it is important to involve a mix of investment types.