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 total risk Lower expected retruns with lower total and relative risk Higher expected returns and higher total risk Lower expected return with higher relative risk Higher expected retruns with lower relative risk 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 total risk Lower expected retruns with lower total and relative risk Higher expected returns and higher total risk Lower expected return with higher relative risk Higher expected retruns with lower relative risk