Characteristic of Strategic Asset Allocation

Easy Asset Allocation Strategic Asset Allocation

Strategic Asset Allocation (SAA) is a fundamental approach in portfolio management that involves establishing a long-term mix of asset classes that aligns with an investor's goals and risk tolerance. Key decisions in SAA typically reflect an investor's outlook on expected returns, risk, and the role of asset classes. Given this context, consider the following question:

Which of the following statements best describes a characteristic of Strategic Asset Allocation?

SAA is frequently adjusted based on short-term market movements.

SAA establishes a fixed allocation to asset classes that reflects long-term investment goals.

SAA is mainly concerned with timing the market to maximize returns.

Hint

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