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CFA Level 3
Portfolio Management and Wealth Planning

Strategic Asset Allocation for Moderate Risk Client

Easy Asset Allocation Strategic Asset Allocation

As a financial advisor, you are preparing a strategic asset allocation plan for a new client, Sarah. Sarah is 38 years old and has a moderate risk tolerance. She intends to invest for both long-term growth and some income generation, as she plans to purchase a home in the next 5 years. Initially, she has expressed a preference for a diverse portfolio that balances stocks and bonds. Given her investment horizon and risk profile, you will need to decide on the appropriate allocation between equities and fixed-income securities.

Which of the following allocations would be most aligned with Sarah's objectives and risk tolerance in a strategic asset allocation framework?

Hint

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% Correct74%