Which of the following statements is/are not correct with respect to the ‘Constant Mix
Strategies’ of asset allocation?
I. Investors adopting these strategies tend to maintain an exposure to stocks that are
in constant proportion of their wealth.
II. The risk-tolerance level of the investors varies proportionately with the level of their
wealth.
III. Reversals in stock markets oppose constant mix strategies over the buy and hold
strategies.
A. Only (I) above
B. Only (II) above
C. Only (III) above
Strategies’ of asset allocation?
I. Investors adopting these strategies tend to maintain an exposure to stocks that are
in constant proportion of their wealth.
II. The risk-tolerance level of the investors varies proportionately with the level of their
wealth.
III. Reversals in stock markets oppose constant mix strategies over the buy and hold
strategies.
A. Only (I) above
B. Only (II) above
C. Only (III) above