1. Kunal Nayyar from California, had $50,000 in investments at the beginning of the year that consisted of a diversified portfolio of stocks (40%), bonds (40%), and cash equivalents (20%). His returns over the last year were 13% on stocks, 6% on bonds, and 1% on cash equivalents. a.) What is Kunal's average return for the year? b.) If Kunal wanted to rebalance his portfolio to its original position, what specific action should he take?

2. Over the years, Samuel and Elizabeth Paget, of Elon, North Carolina, have accumulated $200,000 and $220,000, respectively, in their employer-sponsored retirement plans. If the amount s in their two respective accounts earn a 6 percent rate of return over Samuel and Elizabeth's anticipated 20 years of retirement, how large an amount could be withdrawn from the two accounts each month? (Use PV of an annuity table, etc.)