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01. Portfolio Rebalancing Open with Google Docs You have 100 million dollars in your investment account and choose to keep your money allocated in the

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01. Portfolio Rebalancing Open with Google Docs You have 100 million dollars in your investment account and choose to keep your money allocated in the following proportion and rebalance each quarter: i. 50% in stocks via ETF SPY; ii. 30% in bonds via ETF TLT, iii. 20% in cash Over the past few weeks, SPY went down from $340 to $255, and AGG went up from $140 per share to $178 per share. Cash has an interest rate of zero. a. What is your account $ balance before rebalancing? What proportion of that is in SPY, TLT, and CASH respectively? (5 points) b. How do you rebalance your account to keep the allocation at 50-30-20 for SPY AGG and cash respectively? What to buy and what to sell in dollar amount? How many SHARES of SPY and AGG to buy or sell (5 points)? +

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