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?