NO.PZ202212280100005201
问题如下:
(1) The broker
suggests that Young rebalance her $5.5 million money market account and the
$3.0 million tax-deferred retirement account periodically in order to maintain
their targeted allocations. The broker proposes the same risk profile for the
equity positions with two potential target equity allocations and rebalancing
ranges for the two accounts as follows:
·
Alternative 1: 80% equities +/–
8.0% rebalancing range
·
Alternative 2: 75% equities +/–
10.7% rebalancing range
Determine
which alternative best
fits each account.
选项:
解释:
Alternative 2 is for her $5.5 million money market account.This account is a taxable acountalbe. Since the tax payment can reduce the volatility, the rebalancing range can be wider.
Alternative 1 is for her 3.0 million tax-deferred retirement account. Without the effectivity of volatility redection, the rebalancing range can be thiner.