Appropriate Asset Allocation Strategy for Growth

Medium Asset Allocation Asset Allocation Implementation

In developing an asset allocation strategy for a client, a portfolio manager must consider various dimensions of implementation, including the client's risk tolerance, investment horizon, liquidity needs, and overall financial objectives. The client, Samantha, is a 40-year-old tech entrepreneur with substantial wealth, currently valued at $2 million. She aims for growth-oriented investments with a moderate level of risk. To achieve her objective, the manager is evaluating multiple approaches to implementing the asset allocation strategy.

Which of the following approaches is most appropriate for implementing the asset allocation strategy for Samantha?

Implement a tactical asset allocation strategy that frequently adjusts based on market conditions.

Utilize a strategic asset allocation approach that maintains a fixed percentage of assets in various investment classes.

Choose a constant weight asset allocation strategy that equally distributes investments across all chosen asset classes.

Hint

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