Portfolio Management Q148

0. Patrick Dempsey, a portfolio manager, decides to temporarily invest more of a portfolio in equities than stated in the investment policy statement because he believes that equities are currently underpriced. This decision is most likely an example of:

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Option : C
Explanation : Tactical asset allocation is the decision to deliberately deviate from the policy exposures to systematic risk factors with the intent to add value based on forecasts of the near-term returns of those asset classes.

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