Select the most accurate description of methods used to set Capital Market Expectations and Asset Allocations:

A. Top-down investment analysis involves selecting individual firms by analyzing their financial statements, competitors, and industry in detail while bottom-up investment analysis involves study of and predictions based on the big economic picture as these forces can affect all individual stocks and the market as a whole.

B. Informal tools include Discounted Cash Flow Models such as the Dividend Discount Model and Risk Premium approaches, Formal tools include surveying external analysts to determine their Capital Market expectations, and Statistical models include Econometrics and Time-Series Forecasting of GDP (levels and growth rates).

C. Portfolio managers commonly make investment decisions by combining bottom-up analysis of individual stocks from securities analysts on staff with top-down Capital Market Expectations set by the economist(s) on staff using a wide variety of tools Discounted Cash Flow Models [Formal tools], surveys of external analysts [Informal tools], and Econometrics and Time-Series Forecasting of GDP [Statistical tools].