Which of the following statements regarding strategic asset allocation is/are correct? I. Strategic asset allocation is based on the investors long-term market expectations and long-run capital market equilibrium. II. Strategic asset allocation is based on the investors short-term market expectations and short-run capital market disequilibrium. III. Returns of strategic asset allocation come from the systematic risk that the investor bears. IV. Returns of strategic asset allocation come from the investors exploitation of temporary market mispricing at the asset class level.

Group of answer choices

I

II and IV

I and III

II, III and IV