Understanding Strategic Asset Allocation

Very Easy Asset Allocation Strategic Asset Allocation

Strategic Asset Allocation (SAA) is a fundamental approach in portfolio management that establishes specific target allocations for asset classes based on an investor's long-term financial goals, risk tolerance, and investment horizon.

Which of the following best describes the principle of Strategic Asset Allocation?

A method that allows for dynamic adjustments of portfolios based on short-term market movements.

A long-term investment strategy that determines a fixed proportion of investments across various asset classes.

An investment approach that emphasizes the selection of individual securities to maximize returns.

Hint

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