Which of the following would NOT be a condition for rebalancing a portfolio? A) | Impact of trades on security prices. |
| | B) | Changing time horizons. |
| | C) | Change in wealth of the client. |
| | D) | Availability of new asset classes. |
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Answer and Explanation
Impact of trades on security prices represents a cost of rebalancing.Changing time horizon may necessitate changes in asset mix. Changes in wealth may alter the client's risk preference. New securities may allow asset allocation shifts with lower transaction costs or create more efficient portfolios. Changing time horizon may necessitate changes in asset mix. Changes in wealth may alter the client's risk preference. New securities may allow asset allocation shifts with lower transaction costs or create more efficient portfolios.
Impact of trades on security prices represents a cost of rebalancing.Changing time horizon may necessitate changes in asset mix. Changes in wealth may alter the client's risk preference. New securities may allow asset allocation shifts with lower transaction costs or create more efficient portfolios. Changing time horizon may necessitate changes in asset mix. Changes in wealth may alter the client's risk preference. New securities may allow asset allocation shifts with lower transaction costs or create more efficient portfolios. | 
发表于 2008-9-18 14:55
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