A fixed income portfolio has the following securities with their prices, total values and durations.

security	Price $	Market Value $	Duration	Benchmark %
Sector 1	102.35	11,258,500	5.6	45
Sector 2	95.675	9,376,150	4.2	30
Sector 3	106.75	11,742,500	3.8	25

a) Calculate the percent allocation of the portfolio to the three sectors. Compare with the benchmark percentage allocation. What kind of strategy does the portfolio follow? Explain.

b) Assume the portfolio manager is committed to maintaining duration. A year later, the portfolio composition values and durations are as given below. Calculate the rebalancing ratio and the cash injection needed to maintain the original dollar duration of the portfolio.

security	Price $	Market Value $	Duration
Sector 1	101.85	10,032,225	5.1
Sector 2	93.675	9,180,150	3.8
Sector 3	102.895	10,371,816	2.9