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An investor begins the year with a portfolio worth $250,000. She is properly balanced with 60% of her portfolio in equities, 30% in bonds, and
An investor begins the year with a portfolio worth $250,000. She is properly balanced with 60% of her portfolio in equities, 30% in bonds, and 10% cash. Over the year, the equity portion increases by 5% and the bond portion falls by 10%. The cash portion is unchanged. In order to re-balance the portfolio correctly, the manager would have to
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