IPS asset allocation - excess cash


A general Q on what % is deemed “excess” cash in an asset allocation when you’re given Current Allocation and choice of others in an IPS/SAA questions?

I’ve been going by around 10% or more is too high and causes cash drag…or would you say less?

Should cash just be the liquidity requirements (current spending and an emergency reserve)?

I would think anything beyond required (liq req or client req) would be considered cash drag/excessive cash.