A market timing approach that increases the proportion of funds in stocks when the stock market is expected to be rising,and increases cash when the stock market is expected to be falling is a:
A)strategic asset allocation.
B)tactical asset allocation.
C)portfolio optimization.
D)liquidity expectation timing.

Question

Quizplus · Accepted Answer

The approach described is a tactical asset allocation strategy, as it involves shifting the proportion of funds in response to short-term market conditions. The other options listed do not involve making these kinds of market timing decisions.

A Market Timing Approach That Increases the Proportion of Funds