How A Money Manager Determines The Best Allocation For A Portfolio According To Risk

How does a money manager determine the best allocation for a portfolio according to risk?

The best allocation according to risk would really have to do with the individual or the group of individuals themselves. Some individuals who have outside assets, and maybe they'd be fixed assets, i.e. real estate, or they have income that's being produced, might be willing to accept greater risk in an investment portfolio which would mean adding more stocks, and that might be domestic stocks like we discussed, Proctor & Gamble, Johnson & Johnson, and those are large cap value companies or international companies which would add a bit more risk to, but would allow, hopefully, some potential for higher growth.