The Theory Behind the Managed Fund Cash Ratio Is

The theory behind the managed fund cash ratio is

A) managed fund managers hold high levels of cash when they are optimistic about market conditions.
B) when managed fund managers hold low levels of cash they are pessimistic about market conditions.
C) when managed fund managers hold high levels of cash, they must eventually buy shares with it.
D) when market conditions are favourable, shareholders remit more cash than the managers can invest.