Multiple choice

Which of the following will result in higher percentage of equity than in debt during bullish phase of the equity markets?

  1. Fixed Asset Allocation

  2. Flexible Asset Allocation

  3. Both a & b

  4. Neither a nor b
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Flexible Asset Allocation allows increasing equity exposure during bullish markets to capture higher returns, while Fixed Asset Allocation maintains the same ratio regardless of market conditions. The flexible approach results in higher equity percentage during bull markets as it adjusts allocation based on market trends.

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