Which one of the statements is false?
The buy and hold rebalancing strategy implies that the investor will not rebalance unless his own circumstances change. Instruments are held until the end of the investment horizon even if volatility in the market causes the asset allocation to deviate from the investment strategy.
Market risks are non-diversifiable.
The risk of inflation is diversifiable and affects both cash and bonds.
Savings imply the allocation of capital to create wealth.
1 answer
The false statement is: The risk of inflation is diversifiable and affects both cash and bonds.
1 answer