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:

Option To Terminate

A provision in a contract that allows one or more parties to end the agreement under certain conditions, before the completion date.

Force Majeure

A major, unforeseen, or unanticipated event that occurs and prevents the performance of a contract.

Frustrated Contracts Act

Legislation that deals with contracts that, through no fault of either party, cannot be fulfilled due to unforeseen events.

Termination Clause

A provision in a contract that outlines the conditions under which the agreement can be ended prior to the completion of its term.