Quick Question about portfolio rebalancing
in reading 12: Overview of Asset allocation p. 52 in CFAI Book .. under strategic consideration in rebalancing it written that all else being equal: “less correlated” assets also have tighter rebalancing ranges.
is it correct? or am i missing something here. coz i think, since they are less correlated, that means lower risk and accordingly the range might be wider.
anybody have an answer for me?
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