Asset Allocation

CFA Level 3 · 5 questions

Key Takeaways

Covers strategic vs tactical asset allocation and the asset-liability management approach.
Tests how investor goals and constraints translate into a written policy portfolio.

asset allocation1 / 5

Question 1Easy

An investor with a long time horizon and high risk tolerance is most likely to have which of the following asset allocation characteristics?

A.Higher allocation to equities and lower allocation to bondsB.Higher allocation to bonds and lower allocation to equitiesC.Equal allocation across all asset classesD.Primarily allocated to cash equivalents

Select an answer and check it