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onsider this situation: Your investment strategy is to allocate 80% of your portfolio in the top 4 performing sectors as measured by Sharpe Ratio. The
onsider this situation:
Your investment strategy is to allocate 80% of your portfolio in the top 4 performing sectors as measured by Sharpe Ratio.
The 80% allocation is distributed across the 4 sectors as follows
Sector Ranking Pre-Covid (based on Sharpe Ratio) | Sector | Weight on Investment Portfolio |
1 | Health Care | 30% |
2 | Industrials | 25% |
3 | Information Technology | 15% |
4 | Consumer Discretionary | 10% |
Which of the following changes would make sense as part of a portfolio rebalancing in the post-Covid period? Please note you are making this decision based on the observable performance post-Covid
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