Options
- A
Dynamic asset allocation
- B
Flexible asset allocation
-
Fixed asset allocation
Correct answer
- D
Variable asset allocation
Why this is the answer
In a fixed asset allocation strategy, the portfolio maintains a specific ratio (e.g., 50:50 debt-equity). If market conditions cause the proportion of one asset class to increase or decrease, rebalancing is done to bring the portfolio back to the target ratio.
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