Data Source and Methodology
All calculations are based on standard financial models and data from authoritative sources. For more details, refer to the SmartAsset methodology.
The Formula Explained
Allocation Formula: Allocation = (Investment Amount × Risk Factor)
Glossary of Terms
- Investment Amount: Total capital you plan to invest.
- Risk Tolerance: Your ability to withstand losses in your investment.
- Stocks: Equity investments representing ownership.
- Bonds: Debt investments offering fixed returns.
- Cash: Liquid assets or short-term investments.
Frequently Asked Questions (FAQ)
What is asset allocation?
Asset allocation involves dividing an investment portfolio among different asset categories, such as stocks, bonds, and cash.
Why is asset allocation important?
It helps to balance risk and reward by diversifying investments.
How do I determine my risk tolerance?
Your risk tolerance depends on your financial situation, investment goals, and comfort with potential losses.
Formula (LaTeX) + variables + units
This section shows the formulas used by the calculator engine, plus variable definitions and units.
Formula (extracted LaTeX)
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Formula (extracted LaTeX)
\[{stocks.toFixed(2)}`; document.getElementById("bondsValue").textContent = `\]
{stocks.toFixed(2)}`; document.getElementById("bondsValue").textContent = `
Formula (extracted text)
Allocation Formula: Allocation = (Investment Amount × Risk Factor)
Variables and units
- No variables provided in audit spec.
Sources (authoritative):
- SmartAsset methodology — smartasset.com · Accessed 2026-01-19
https://smartasset.com/investing/asset-allocation-calculator
Changelog
Version: 0.1.0-draft
Last code update: 2026-01-19
Last code update: 2026-01-19
0.1.0-draft · 2026-01-19
- Initial audit spec draft generated from HTML extraction (review required).
- Verify formulas match the calculator engine and convert any text-only formulas to LaTeX.
- Confirm sources are authoritative and relevant to the calculator methodology.