Over the past 10 years, Gordon has maintained his portfolio as 40% bonds and 60% stocks. The strategy Gordon has followed over this period is best described as:
A) constant proportion portfolio insurance (CPPI).
B) buy-and-hold.
C) constant mix.
D) portfolio optimization.

Question

Quizplus · Accepted Answer

Gordon's strategy of maintaining a fixed ratio of 40% bonds and 60% stocks is characteristic of a constant mix strategy, where the portfolio is rebalanced to maintain a specific asset allocation.

Over the Past 10 Years, Gordon Has Maintained His Portfolio