Financial Planner

Answer: A - The setting of specific percentages for each asset class demonstrates a Passive investing strategy. These percentages for a passive strategy should be maintained over time; the portfolio will require rebalancing every six months or so for tactical; asset allocation. This method of investment strategy are usually practiced by investors that re not attempting to outperform the market. Rather, they are looking to immunize their portfolios in an effort to lock in specified rates of return that they deem acceptable, given the risks involved. This strategy does not generate significant transaction costs.