Finance Brain
Courses
Home
Sign in
← Why Portfolios Drift
1 / 3
Question
A portfolio starts at 60% equities / 40% bonds. After a strong equity bull market, it drifts to 75% equities / 25% bonds. What has happened to the portfolio's risk profile?
1
The risk profile is unchanged because the total portfolio value has increased.
2
The portfolio is now less risky because equities have proved their value.
3
The bond allocation has fallen, which reduces overall portfolio risk.
4
The portfolio now carries significantly more equity risk than was originally intended.
Press 1–4 to pick an answer
Finance Brain