In ____ asset allocation, the investor's risk tolerance and constraints are assumed to be constant over time. However, changes in capital market conditions result in changes in the portfolio's stock-bond mix.

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Quizplus · Accepted Answer

This is referring to the tactical asset allocation approach, where the overall strategy remains constant, but adjustments are made based on changing market conditions. It assumes that the investor's risk tolerance and constraints are still the same, but takes into account the shifting market environment. The other options do not fit this description.

In ____ Asset Allocation, the Investor's Risk Tolerance and Constraints