To address his concern regarding the previous adviser’s asset allocation approach, Raye should assess the Laws’ portfolio using:

A. a homogeneous and mutually exclusive asset class–based risk analysis.

B. a multifactor risk model to control systematic risk factors in asset allocation.

C. an asset class–based asset allocation approach to construct a diversified portfolio.

Raye uses a cost–benefit approach to rebalancing and recommends that global equities have a wider rebalancing range than the other asset classes.