Assignment 1: Portfolio revisions in the context of the contrarian and dynamic investment strategies. Please write your name: (60 pts) 1. A dynamic asset allocation model is described as: Dollars Invested in Stock = 2.5 (Assets-Floor). Where assets are $500 and floor is desired to be $360. a) Calculate the initial asset allocation to stocks and bonds. b) If stock rises by 5%, calculate the new asset allocation to stocks and bonds. 2a. (20 pts) Explain the contrarian (constant mix) style in portfolio revisions and show how it differs from the dynamic asset allocation. 2b. (20 pts) Distinguish when one approach may work better that the other. That is, explain under what market conditions the contrarian strategy may work better and when it may fail to produce a good performance