Strategic Asset Allocation for Moderate Risk Portfolio

Medium Asset Allocation Strategic Asset Allocation

James is a portfolio manager for a firm with a long-term investment horizon. He is evaluating the strategic asset allocation for a new client who seeks to achieve a blend of growth and income from their portfolio. The client has a moderate risk tolerance and is particularly interested in diversifying across asset classes while considering both domestic and international investments.

James considers three potential strategic asset allocation strategies:

70% equities, 30% fixed income, with no international exposure.

50% equities (40% domestic, 10% international), 30% fixed income, and 20% alternatives.

60% fixed income, 20% equities, and 20% cash equivalents.

Hint

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% Correct96%