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Dinah's portfolio consists of a 5 0 % equity index fund and a 5 0 % fixed income index fund. The portfolio will be reallocated
Dinah's portfolio consists of a equity index fund and a fixed income index fund. The portfolio will be reallocated using the constant weighting method. More details are shown below:
Fund Shares NAV Total Value
Equity Index $ $
FixedIncome Index $ $
Dinah should do which of the following if the price of the Equity Fund changes to $ and the price of the Fixed Income Fund changes to $
a Sell shares of Equity and purchase shares of Fixed Income.
b Sell shares of Equity and purchase shares of Fixed Income.
c Sell shares of Fixed Income and purchase shares of Equity.
d Sell shares of Fixed Income and purchase shares of Equity.
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