Ultimate access to all questions.
Upgrade Now 🚀
Sign in to unlock AI tutor
Which of the following principles best justifies the emphasis on strategic asset allocation in the construction of a client's Investment Policy Statement (IPS)?
A
Incorporating assets with high correlation enhances the risk-return profile.
B
Nonsystematic risk is the primary driver of a portfolio's long-term value fluctuations.
C
The returns of comparable asset groups consistently mirror exposures to specific systematic factors.
