Which of the following is a benefit of using a constant mix strategy?

Using a constant mix strategy has several advantages, one of which is that it allows for automatic rebalancing based on market conditions. This means that as the values of the various assets in a portfolio fluctuate due to market movements, the strategy entails periodically adjusting (or rebalancing) the portfolio back to a predetermined mix of asset classes.

This automatic rebalancing helps maintain the risk profile of the portfolio in alignment with the investor's objectives since the allocations to each asset class are kept at a constant percentage. For instance, if equities rise significantly and their portion of the portfolio increases beyond the desired level, rebalancing may involve selling some of those equities to buy more bonds, ensuring that the investor does not take on more risk than intended.

This adaptability can be beneficial in volatile markets, as it helps prevent the portfolio from becoming too heavily weighted in one asset class, thereby managing risk levels over time.

Other options, while related to investment strategies, do not accurately reflect the core benefits of a constant mix strategy. For instance, the strategy does not guarantee fixed income, does not eliminate the need for performance analysis, and it does not focus solely on long-term equity growth, as it encompasses a mix of different asset classes intended to balance risk