All of the following include Strategic asset allocation EXCEPT: a) can result in a set of...

All of the following include Strategic asset allocation EXCEPT:

a) can result in a set of portfolio weights for a given investor.

b)considers risk tolerance, return objectives and constraints.

c)ignores capital market expectations as that is the next step in the portfolio process.

d) can be considered a process and a result

Solutions

Expert Solution

Strategic asset allocation will be always including the capital market expectation because the capital market expectation is included in the overall asset allocation ratios as investors will be allocating his overall asset in desired proportion in order to make a higher rate of return as per the capital market expectation.

All the others are included in strategic asset allocation.

Vorrect answer is option (C) Ignores capital market expectation as that is the next step in portfolio process

jeff jeffy answered 1 year ago

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