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A dynamic asset allocation model is described as: Dollars Invested in Stock = 2.5 (Assets-Floor). Where assets are $700 and floor is desired to be

A dynamic asset allocation model is described as: Dollars Invested in Stock = 2.5 (Assets-Floor). Where assets are $700 and floor is desired to be $550.

A.Calculate the initial asset allocation to stocks and bonds.

B. If stock falls by 15%, calculate the new asset allocation to stocks and bonds.

Answer with respect to Excel

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