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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.

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.

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