Question

The target allocation for a specific asset class has been set at 20% of total assets under an asset allocation scheme. The manager is permitted to reduce this percentage to 15%; and can increase it to 25%; as he or she sees fit. The setting of the 20% target allocation is called:

Answer 1

C. tactical asset management

Step-by-step explanation:

Based on the scenario being described within the question it can be said that the setting of the 20% target allocation is called tactical asset management. This term refers to a variation of the strategic asset management in which is given to the asset manager in order for that individual to take advantage of certain market opportunities. Such as the manager has done in this scenario