n NISM Certifications
NSM General NISM
Medium

What is the meaning of rebalancing in portfolio management?

Practice question from B2 Intermediate Session 1 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Frequently switching funds based on recent performance

  2. B

    Investing only in top-performing asset classes

  3. C

    Ignoring allocation changes due to market movements

  4. Restoring the portfolio to its original target allocation

    Correct answer

A full explanation for this question is being written. In the meantime, the correct answer is highlighted above.

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