Dynamic asset allocation involves the switching between risky and low-risk investments by institutional investors over time in response to changing expectations.

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Dynamic asset allocation is a strategy where investors (including institutional investors) adjust the mix between different asset classes (e.g., stocks, bonds) over time based on changing market conditions, risk tolerance, and investment goals, often shifting between higher-risk and lower-risk investments as expectations evolve.

Dynamic Asset Allocation Involves the Switching Between Risky and Low-Risk