One of your clients has seen the value of the aggressive growth fund in her portfolio fall by over 70%. Which one of these actions might be appropriate for her IAR?

One of your clients has seen the value of the aggressive growth fund in her portfolio fall by over 70%. Which one of these actions might be appropriate for her IAR?


A) stay in this fund hoping for a recovery.

B) take advantage of the drop in value by purchasing additional shares at this lower price.

C) switch to a more conservative fund in the same fund family.

D) switch to a money market fund in the same fund family.



Answer: C) switch to a more conservative fund in the same fund family.


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