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Both tactical and dynamic asset allocation are considered active strategies.

The optimal portfolio depends on the investor’s risk tolerance.

Dynamic asset allocation involves adjusting the asset mix in response to changing market conditions.

All feasible portfolios are efficient portfolios.

The feasible set includes all portfolios that can be constructed from available assets.

Strategic asset allocation focuses on short-term market opportunities.

Tactical asset allocation requires permanent changes in asset allocation targets.

The mean-variance model assumes investors prefer higher risk when returns are equal.

The Sharpe ratio can be used as a criterion for selecting an optimal portfolio.

The homogeneous expectations assumption means all investors have identical expectations.