Investment Math edited untitled.md  almost 8 years ago

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_Oh, an empty article!_ You can get started Rebalancing is the act of restoring portfolio weights or numbers of shares to prespecified values. The need to rebalance is usually created  by **double clicking** this text block and begin editing. You can also click the **Text** button below the natural tendency of portfolio weights to drift in the absence of any action. Seen at the level of the number of shares, the need to rebalance is the result of a need  to add new block elements. Or you can **drag and drop an image** right onto this text! change the number of shares.  As explained in the prior post, rebalancing is easily understood when the target portfolio weights are constant. In the absence of rebalancing, portfolio weight drift away from their targets unless all asset returns are equal. But the term rebalancing is often used even when targeted portfolio weights are time varying.