The Asset Allocation Strategy That Separately Examines Capital Market Conditions

question 38

Multiple Choice

The asset allocation strategy that separately examines capital market conditions and the investor's objectives and constraints is called

• A) Integrated asset allocation.
• B) Tactical asset allocation.
• C) Sector rotation.
• D) Strategic asset allocation.
• E) Insured asset allocation.

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Definitions:

Strategic Approach

A planned method of action designed to achieve long-term goals or overall objectives.

Maximum Impact

The greatest possible effect or influence that an action, decision, or event can have on a situation or organization.

Training Investments

Resources allocated by an organization towards the development and improvement of its employees' skills and knowledge.

Behaviour Modification

A technique that operates on the principle that behaviour that is rewarded, or positively reinforced, will be exhibited more frequently in the future, whereas behaviour that is penalized or unrewarded will decrease in frequency.