A portfolio manager computes a relatively low price$-$to$-$book ratio for the small cap

firms in the portfolio. The manager computes an intrinsic value of European indexes

that match the current market value. Relative valuation by the manager indicates

large cap price multiples are in line with their historical values. The manager

currently has the following allocations: $20\%$ small cap equities, $55\%$ large cap

equities, $20\%$ European mid$-$cap equities, and $5\%$ cash. A tactical decision to deviate

from strategic weights would most likely include an increase in pertfolio weights to:

Large cap equities.

Small cap equities.

Cash.

European mid cap equities.