Appropriate Strategic Asset Allocation for Long-term Client

Medium Asset Allocation Strategic Asset Allocation

John is a portfolio manager who is tasked with establishing a Strategic Asset Allocation (SAA) for a new client. The client has an investment horizon of 15 years and a moderately aggressive risk tolerance. John must decide on the optimal percentage of the portfolio to allocate to equities, fixed income, and alternative investments.

Considering the principles of Strategic Asset Allocation, which of the following allocations would be most appropriate for John to recommend, given the client’s profile?

60% Equities, 30% Fixed Income, 10% Alternatives

30% Equities, 50% Fixed Income, 20% Alternatives

80% Equities, 10% Fixed Income, 10% Alternatives

Hint

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Correct10.1K

% Correct97%