C选项low transaction cost不就应该是wider嘛，哪里错了

问题如下：

Which of Radell’s justifications for the proposed rebalancing ranges for Option 2 is most accurate? The one based on:

选项：

A.volatility. B.correlation. C.transaction costs.

解释：

Solution

A is correct. Radell indicates that a wider rebalancing range for the global fixed-income fund is appropriate. This assertion is correct because this asset class exhibits low volatility relative to the rest of the portfolio (3.5%, Exhibit 1). The lower the volatility of an asset class relative to the rest of the portfolio, the wider the optimal rebalancing corridor.

B is incorrect. When an asset class exhibits a lower correlation with the rest of the portfolio, the rebalancing range should be narrower—not wider—to preserve its contribution to risk reduction.

C is incorrect. The low transactions costs associated with the global fixed-income asset class means that rebalancing will be less costly, justifying a narrower rebalancing corridor