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.

---

Definitions:

Gain or Loss

Gain or loss refers to the financial result from the sale of a capital asset, where a gain occurs if the sale price exceeds the purchase cost, and a loss occurs if the sale price is below the purchase cost.

Sales Price

The amount of money that a buyer pays to purchase a product or service.

Net Proceeds

Net Proceeds refer to the amount of money received from a sale or transaction after all fees, expenses, and costs have been deducted.

Operating Cycle

The period from the acquisition of inventory to the collection of cash from receivables, reflecting a company's efficiency in managing its working capital.