tycoon

Each of the following statements concerns either strategic asset allocation or tactical asset allocation. Which of the following statements is least accurate?

A) Strategic asset allocation employs a long-run view of capital market conditions.

B) Tactical asset allocation is designed to take advantage of perceived inefficiencies in the asset markets.

C) Tactical asset allocation employs a long-run view of capital market conditions.

D) Strategic asset allocation is typically a constant mix strategy.

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Answer and Explanation

Tactical asset allocation is an attempt to take advantage of temporary capital market inefficiencies and takes a short-run view of market conditions. All of the other statements are true.