Question
A portfolio has an asset mix of 5% safety, 35% income and 60% growth. When the manager reviews the account prior to the client's annual
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A portfolio has an asset mix of 5% safety, 35% income and 60% growth. When the manager reviews the account prior to the client's annual review, she notices that the asset mix had changed. The current balance by asset type is listed below.
Safety $5,050 Income $44,050 Growth $60,900
What transactions would you need to perform on the account to bring it back in line with the strategic asset mix?
No transactions are necessary
Move $6,500 from Income to Growth and $0 from Income to Safety
Move $5,100 from Income to Growth and $450 from Income to Safety
Move $5,500 from Growth to Income and $450 from Growth to Safety
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International financial management
Authors: Jeff Madura
9th Edition
978-0324593495, 324568207, 324568193, 032459349X, 9780324568202, 9780324568196, 978-0324593471
