Which item below is not a valid reason for selling a security?
A)Its price has increased to such an extent that it is now overvalued.
B)Its alpha has increased.
C)The investor has an opportunity for a tax swap.
D)The investor's objectives change.

Question

Quizplus · Accepted Answer

Alpha is a measure of a security's outperformance compared to its benchmark. However, it is not a reason to sell a security. Overvaluation, tax implications, and changing investment objectives are all valid reasons to sell a security.

Which Item Below Is Not a Valid Reason for Selling