The investment style known as ____ involves an active decision to the appropriate allocation of funds between a surrogate market portfolio and a riskfree asset.

Question

Quizplus · Accepted Answer

The investment style described in the question is market timing, where the investor actively decides the allocation of funds between a market portfolio and a risk-free asset based on their assessment of the market's direction. Risk adjustment refers to adjusting a portfolio's risk level based on a particular investor's risk tolerance. Security selection involves choosing individual securities to invest in, while sector rotation involves shifting investments between different sectors of the market based on market conditions.

The Investment Style Known as ____ Involves an Active Decision