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At the beginning of the year you opened your first IRA. You have decided upon a 90% stock, 10% bond asset allocation, with annual rebalancing.

At the beginning of the year you opened your first IRA. You have decided upon a 90% stock, 10% bond asset allocation, with annual rebalancing. Today is the day for your first rebalancing and you are nearly giddy with excitement. You would like to reset your portfolio to the 90/10 weighting scheme. Using the information listed below, what should you do?

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Sell 12.9 shares of the stock fund and use the cash generated to buy 16.09 shares of the bond fund.

Sell 12.9 shares of the bond fund and use the cash generated to buy 28.29 shares of the stock fund.

Buy 317.43 shares of the bond fund and sell 81.98 shares of the stock fund.

Sell 89 shares of the stock fund and use the cash generated to buy 10 shares of the bond fund.

None of the above

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