What is the answer?
Contrarian?
I would actually go with Investor A because trend following strategies i.e. high correlation to the market won’t deviate much so tighter rebalancing band makes sense.
Contrarian investor will most likely have negative correlation to the market movement so higher rebalancing band will be suitable anticipating many deviations. And the answer is…!?
Okay, so if market is trending and I have tighter rebalancing range, how is trend follower benefitting here?