Jaycee is using strategic asset allocation. The portfolio is built around Adam's long-term objectives, risk tolerance, constraints, and benchmark mix, then reassessed periodically to confirm that the policy allocation still fits his circumstances. Strategic allocation is not an attempt to move aggressively between sectors or asset classes based on near-term forecasts. Tactical allocation would involve short-term deviations from the policy mix to exploit perceived market opportunities. Active management refers to security selection or manager decisions intended to outperform a benchmark. Integrated is not the standard allocation term being tested. The AFP course treatment emphasizes that the long-term asset mix is the primary driver of portfolio risk and return; periodic review and rebalancing keep the portfolio aligned with the plan. Jaycee's process is disciplined, policy-based, and client-specific, which is strategic allocation. Study Guide focus: strategic asset allocation, rebalancing, investment policy, risk tolerance, and long-term benchmark mix. The review does not replace the policy mix; it tests whether the policy mix still remains appropriate.

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