What does asset-only allocation focus on?

Asset-only allocation primarily emphasizes the characteristics and behavior of the investment assets themselves without considering the liabilities associated with these assets. This approach analyzes various aspects of the assets, such as expected returns, risk profiles, correlations with other assets, and the overall asset mix within the portfolio.

By focusing solely on the assets, this method allows for a clearer understanding of how different asset classes contribute to the overall portfolio performance based on their individual attributes. It helps in constructing an efficient asset allocation strategy that seeks to optimize returns for a given level of risk, independent of the investor's liabilities.

In contrast, the other options involve elements that either include or emphasize external factors like liabilities or investor preferences, which are not the primary focus of asset-only allocation. Thus, the emphasis on assets alone is critical for building a portfolio that aims for desired risk-return characteristics without layering in additional complexities such as liabilities or personal preferences.