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CFA Level 2
Portfolio Management

Understanding Strategic Asset Allocation Characteristics

Easy Asset Allocation Strategic Asset Allocation

John is an investment manager working with a client to develop a long-term investment strategy. They are discussing how to allocate assets within the investment portfolio to achieve their specific goals over a 10-year horizon. John emphasizes the importance of maintaining a consistent asset allocation strategy that aligns with the client’s risk tolerance and investment objectives despite short-term market fluctuations.

Given this context, what would be considered a characteristic of Strategic Asset Allocation?

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