An Investor Adopts a Policy of Investing in Both an Aggressive

Multiple Choice

An investor adopts a policy of investing in both an aggressive managed 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) dollar- cost averaging
B) constant- ratio
C) variable- ratio
D) constant- dollar