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Using the in-class activity solution [week_5 Pivot Is Covid a market tail event.xlsx], please consider...

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Finance

Using the in-class activity solution [week_5 Pivot Is Covid a market tail event.xlsx], please consider this situation:
Your investment strategy is to allocate 80% of your portfolio in the top 4 performing sectors as measured by Sharpe Ratio.
The 80% allocation is distributed across the 4 sectors as follows
Sector Ranking Pre-Covid
(based on Sharpe Ratio) Sector Weight on Investment Portfolio
1 Health Care 30%
2 Industrials 25%
3 Information Technology 15%
4 Consumer Discretionary 10%
Which of the following changes would make sense as part of a portfolio rebalancing in the post-Covid period?
Please note you are making this decision based on the observable performance post-Covid
Group of answer choices
Increase the Health Care weight in the portfolio
Increase the Industrials weight in the portfolio
Reduce the Information Technology weight in the portfolio
Increase the Consumer Discretionary weight in the portfolio

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