Answer: Tactical adjustments.

A black swan event is an unpredictable occurrence with significant consequences. In the short term, such events often lead to market volatility and a flight to quality. Investors with suitable time horizons and risk tolerance may respond by making **tactical adjustments** to their portfolios. These changes are typically short-term and reactive. - **Option B (Sector-specific adjustments)** is incorrect because it pertains to medium-term impacts of geopolitical risks, which affect specific sectors more than others. - **Option C (Strategic asset allocation changes)** is incorrect as it relates to long-term impacts, where risks influence environmental, social, and governance factors, requiring adjustments over a prolonged period. Immediate portfolio impacts are limited in such cases.

Author: LeetQuiz Editorial Team