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QUIZ: percentage of portfolio
When an asset class has breached its corridor width in a Percentage-of-Portfolio rebalancing method, which of the following actions is appropriate?
A) Rebalance entire portfolio to target weights
B) Rebalance only the breached asset class to its target weight, and add (subtract) the amount sold (bought) to (from) other asset classes
C) Rebalance only the breached asset class to its threshold weight, and add (subtract) the amount sold (bought) to (from) other asset classes |
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