Consider the following statements. Which of the statement is (are) correct? 1. Rebalancing using the
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Question:
Consider the following statements. Which of the statement is (are) correct?
1. Rebalancing using the percentage-of-portfolio method is directly related to market performance.
2. Calendar rebalancing is unrelated to market behavior
3. Constant-mix rebalancing strategy may offer superior returns relative to the buy-and-hold rebalancing strategy if markets more characterized by reversals than trends.
4. Constant-mix rebalancing strategy implies a risk tolerance that is positively related to wealth and equity market returns.
Related Book For
Financial and Managerial Accounting
ISBN: 978-0132497978
3rd Edition
Authors: Horngren, Harrison, Oliver
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