Question

f one asset class greatly underperforms another class in an asset allocation plan, the portfolio must be:

Answer 1

rebalanced.

Step-by-step explanation:

When this occurs the portfolio must be rebalanced. This refers to the process of realigning and weighting a portfolio's assets in order to maintain an original or desired level of asset allocation. This is accomplished by buying and selling different assets so that you take profits and at the same time allocate percentages from one asset to another. This also allows you to maintain a level of acceptable risk in your portfolio.