Conservative investors prefer to restrict portfolio managers' risk taking by keeping narrow ranges around asset classes and asset groups.

For example if the SAA allocates 20% to bonds, then a range of 18% to 22% for bonds is considered narrow compared with a range of 10% to 30%.

Tactical Asset Allocation (TAA) with wider ranges will result in:

Lower expected return with higher relative risk

Higher expected returns and higher total risk

Lower expected returns with lower total and relative risk

Higher expected returns with lower relative risk

Lower expected return with higher total risk