Rebalancing is an important part of portfolio management, which reason best explains why one should consider rebalancing
Fantastic news! We've Found the answer you've been seeking!
Question:
Rebalancing is an important part of portfolio management, which reason best explains why one should consider rebalancing their portfolio regularly?
In the long run the portfolio will remain diversified without trading, transaction costs eliminate the benefit
It is a programmatic approach to selling assets that have appreciated and buying assets that have depreciated
New asset classes appear and are cheap to buy at first
Buying more of the winning asset classes will ensure diversification
Related Book For
Quantitative Methods for Business
ISBN: 978-0840062345
12th edition
Authors: David Anderson, Dennis Sweeney, Thomas Williams, Jeffrey Cam
Posted Date: