Understanding Strategic Asset Allocation Goals

Very Easy Asset Allocation Strategic Asset Allocation

As an investment advisor, you are tasked with constructing a portfolio for a client who is primarily focused on long-term wealth accumulation while maintaining a moderate level of risk. The client has a well-defined investment horizon of 10 years and has expressed a preference for a diversified approach to asset allocation. Considering these factors, what should be the main objective of the strategic asset allocation for this client's portfolio?

To maximize short-term returns and minimize risk.

To align the portfolio with the client’s long-term investment goals and risk tolerance.

To invest predominantly in high-risk/high-reward assets.

Hint

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