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CFA Level 2
Portfolio Management

Understanding Tactical Asset Allocation

Very Easy Asset Allocation Tactical Asset Allocation

Tactical Asset Allocation (TAA) is a dynamic investment strategy that actively adjusts the weights of various asset classes in a portfolio based on short-term market forecasts. It aims to exploit perceived mispricings by over- or under-weighting certain assets relative to their long-term strategic allocation proportions. Given this understanding, consider the following scenarios:

Which statement best describes Tactical Asset Allocation?

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