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When market conditions are such that a passively managed portfolio no longer meets its target allocation, the tool most commonly used to rectify the situation is A) tactical management B) re-targeting C) sector rotation D) rebalancing

User Tome
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8 votes

Answer:

D) rebalancing

Step-by-step explanation:

Rebalancing in domain of marketing can be regarded as a process involving realiigment of weighting of portfolio of particular asset. It involves activities such as buying or even selling of asset in portfolio so that desired allocation/ risk is been maintaned. It should be noted that When market conditions are such that a passively managed portfolio no longer meets its target allocation, the tool most commonly used to rectify the situation is rebalancing.

User Chris Eidhof
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