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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

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

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