Which of the Following Is an Advantage of Monitoring and Rebalancing

question 3

Multiple Choice

Which of the following is an advantage of monitoring and rebalancing a portfolio over time?

• A) Lower commissions
• B) Lower taxes
• C) A portfolio that is better aligned with objectives
• D) A portfolio with greater expected return

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Definitions:

Term Deposit

A bank deposit that has a fixed term and typically offers a higher interest rate than savings accounts.

Credit Union

A member-owned financial cooperative that provides traditional banking services.

Simple Interest

Interest calculated only on the principal amount, or the original sum of money borrowed or invested, without considering the effect of compounding over time.

Obligations

Duties or commitments that require an individual or organization to act in a certain manner, often legally binding.