Implementing Asset Allocation Strategies

Alice is a financial advisor who is preparing a portfolio for a client that requires a balanced approach to risk and return. She is considering how to implement the asset allocation strategy that was previously defined. Alice knows that successful asset allocation implementation involves various methods of investing in different asset classes.

She is particularly focused on ensuring that the portfolio matches the client’s investment goals and risk tolerance. As part of her planning, she considers how to diversify the investments to mitigate risk while also seeking growth.

Which of the following methods is likely to be the most effective for implementing Alice’s strategy of asset allocation in her client’s portfolio?