Canadian Securities Course (CSC) Level 2 Practice Exam 2025 - Free CSC Level 2 Practice Questions and Study Guide

The tactic of focusing on short-term deviations and capitalizing on immediate opportunities aligns very well with tactical asset allocation. This strategy is designed to take advantage of market inefficiencies and short-term market movements, allowing investors to adjust their portfolio allocations based on current market conditions and trends.

Tactical asset allocation involves making active decisions to shift portions of the portfolio to different asset classes as market conditions change, which is primarily driven by the potential for immediate gains from short-term opportunities. This differs from other strategies that may emphasize long-term investment horizons.

Dynamic allocation and integrated asset allocation involve more continuous adjustments based on broad market trends or in response to overall economic conditions rather than focusing specifically on short-term market fluctuations. Strategic asset allocation, on the other hand, is primarily about maintaining a long-term asset mix and does not change frequently in response to immediate market opportunities.

Therefore, tactical asset allocation is indeed the correct answer, as it embodies the strategy of seizing short-term opportunities within the market.