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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

  1. 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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