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deciding how much of a portfolio to invest in common stock bond and other investment instruments...

deciding how much of a portfolio to invest in common stock bond and other investment instruments is an example of tactical asset allocation active investing strategic asset allocation passive investing

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Answer #1

Answer

Deciding how much of a portfolio to invest in common stock bond and other investment instruments is an example of tactical asset allocation active investing.

Explanation

Under Active investing as the name suggest portfolio managers are active participant and they allocate the assets tactically. Tactical asset allocation is a investment strategy where the stocks, bonds, and cash are actively balanced and modified by the investor for maximizing portfolio returns .

Under passive investing the investor usually rely on market index or mutual funds and he does not take risks in securities,bonds etc. Passive investing involves less buying and selling.

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