Final answer:
Asset allocation is influenced by factors like risk tolerance, economic conditions, and age, but not typically by religion unless specifically seeking religiously compliant investments. Hence, the correct answer is C) religion.
Step-by-step explanation:
When determining asset allocation, various factors should be taken into consideration to ensure it aligns with the investor’s objectives, time horizon, and tolerance for risk. Risk tolerance and age are crucial aspects of this process. Your risk tolerance dictates how much risk you are comfortable taking, which can affect the proportion of stocks, bonds, and other investments in your portfolio. As one ages, generally, a shift towards more conservative investments is preferred to preserve capital. Economic conditions may also influence your portfolio as they can affect the performance of certain asset classes. Religion, however, is not typically considered a direct factor in deciding asset allocation unless you opt for religiously tailored investments, such as Shariah-compliant funds for Muslims. In the context of a general approach to asset allocation, religion is not a primary consideration.
Therefore, the answer to the question is C) religion. Your asset allocation decision should be primarily influenced by factors that impact your investment strategy and financial situation, such as risk tolerance, economic conditions, and age, but not directly by religion.