Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamentals Of Healthcare Finance

Authors: Paula H. Song, Kristin L. Reiter

4th Edition

1640553223, 978-1640553224

More Books

Students also viewed these Finance questions