A constant mix strategy for portfolio rebalancing means
A) constantly changing the mix between stocks and bonds to time the market
B) constantly changing the individual stocks contained in the equity asset allocation category
C) maintaining the same relative weighting of asset categories
D) increasing or decreasing the amount of funds in a portfolio depending on the expected return

Question

Quizplus · Accepted Answer

A constant mix strategy involves maintaining a fixed proportion of different asset categories, such as stocks and bonds, in a portfolio, regardless of market fluctuations.

A Constant Mix Strategy for Portfolio Rebalancing Means