Constant mix wealth, levels, investor, allocation

Dapper425

A constant mix asset allocation strategy assumes that an investor’s risk tolerance:

A) increases as the portfolio value rises and falls as the portfolio value falls.

B) is constant, regardless of wealth levels.

C) falls as the portfolio value approaches the floor value.

Analyze_This

A nswer pls

Colum

B. If you are keeping your exposure to high risk investments (like emerging markets) constant as a percentage of your portfolio, that must mean your risk tolerance is constant.