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In a portfolio insurance strategy, when stock prices drop, the portfolio is rebalanced by (a) Buying stock and investing at the risk-free rate. (b) Buying

In a portfolio insurance strategy, when stock prices drop, the portfolio is rebalanced by

(a) Buying stock and investing at the risk-free rate.

(b) Buying stock and borrowing at the risk-free rate.

(d) Selling stock and borrowing at the risk-free rate.

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