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A portfolio consists of 50% equity index fund and 50% fixed-income index fund. The portfolio will be reallocated using the constant weighting method. More details
A portfolio consists of 50% equity index fund and 50% fixed-income index fund. The portfolio will be reallocated using the constant weighting method. More details are shown below: Fund Equity Index Fixed Income Index Shares 1,000 800 Net Asset Value $20 $25 Total Value $20,000 $20,000 The new allocation decision if the price of the Equity Fund changes to $22 and the price of the Fixed Income Fund changes to $30 is most likely to: Sell 46 shares of Equity and purchase 33 shares of Fixed-Income. Sell 33 shares of Equity and purchase 46 shares of Fixed-Income. Sell 46 shares of Fixed-Income and purchase 33 shares of Equity. Sell 33 shares of Fixed-Income and purchase 46 shares of Equity
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