Monitoring and rebalancing a portfolio over time involves all of the following costs EXCEPT
A)commissions.
B)possible impact on market price.
C)holding a portfolio that is no longer adequately diversified.
D)time involved in decision making.

Question

Quizplus · Accepted Answer

Monitoring and rebalancing a portfolio over time involve costs such as commissions, possible impact on market price, and time involved in decision making. However, holding a portfolio that is no longer adequately diversified is not a cost of monitoring and rebalancing but rather a risk. It is important to monitor and rebalance a portfolio to maintain proper diversification and manage risks.

Monitoring and Rebalancing a Portfolio Over Time Involves All of the Following