Course: Investment & Analysis

page 4 b) You follow the constant dollar plan to manage and revise your portfolio. Values and guidelines for portfolio revision are as follows: Initial portfolio value = $50,000 Speculative portion = $30,000 Conservative portion = $20,000 Trigger point: A rise or fall in the speculative portion of $2,000 or more than its initial value. Rebalancing action: Bring the speculative portion back to its initial level. Given the above criterion, complete the table below: Value of Speculative Conservative Total Portfolio Transactions No. of securities in Portion ($) Portion ($) Value ($) shares in speculative Speculative portion($) (1) (2) (3) (4) (5) (6) Portion 50 51 45 45 47 50 50 52 (6 marks)