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An Investor Adopts a Policy of Investing in Both an Aggressive

Question 103

Multiple Choice

An investor adopts a policy of investing in both an aggressive mutual fund and a short-term bond fund. When the value of the aggressive fund exceeds 65% of the portfolio value, shares of that fund are sold such that the aggressive fund represents only 45% of the portfolio. This is an example of a ________ plan.


A) constant-dollar
B) dollar-cost averaging
C) constant-ratio
D) variable-ratio

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