Exam Series 6 topic 1 question 232 discussion

Actual exam question from FINRA's Series 6

Question #: 232
Topic #: 1

A passive asset allocation strategy that involves establishing specific targeted percentages for the various asset classes and rebalancing only as necessary to maintain those percentages as long as the investors investment objectives remain unchanged is called:

A. strategic asset allocation.
B. tactical asset allocation.
C. interactive asset allocation.
D. dynamic asset allocation.

Show Suggested Answer

Suggested Answer: A 🗳️
A passive asset allocation strategy that involves establishing specific target percentages for the various asset classes and rebalancing only as necessary to maintain those percentages as long as the investors investment objectives remain unchanged is called strategic asset allocation. Tactical asset allocation is an active strategy that involves trying to time the market to some extent. Dynamic asset allocation is also an active strategy in which the portfolio mix is adjusted as markets rise and fall, such that the weighting is heaviest in those asset classes that can be expected to perform well under the current economy.
Interactive asset allocation is a fictitious strategy.

by lolojepu at April 6, 2025, 1:27 a.m.

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