Which of the following portfolio construction methods starts with security analysis?

A) Top-down
B) Bottom-up
C) Middle-out
D) Buy and hold
E) Asset allocation

Portfolio Construction

The process of selecting a mix of assets to achieve specific investment goals, taking into account risk tolerance and investment horizon.

Security Analysis

The process of examining and evaluating the financial health of securities for investment purposes, often involving fundamental or technical analysis.

Top-Down

An investment strategy that starts with global or macroeconomic factors before identifying specific stocks or sectors.