Question: A CPPI portfolio has a floor value of $4 million, a market value of $7 million, and a multiplier of 1.5. If stocks increase by

A CPPI portfolio has a floor value of $4 million, a

A CPPI portfolio has a floor value of $4 million, a market value of $7 million, and a multiplier of 1.5. If stocks increase by 20% and bonds increase by 12%, rebalancing requires O buying $900,000 in stocks and selling $900,000 in bonds O buying $900,000 in bonds and selling $900,000 in stocks O buying $1,200,000 in stocks and selling $1,200,000 in bonds O no action because a CPPI portfolio is passively managed

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