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

1 Answer

Answer :

C. Only (III) above

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