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Jonathan Hartwell met with his investment advisor and it was determined that his $300,000 portfolio would be allocated in the following manner: 50% equities, 40%
Jonathan Hartwell met with his investment advisor and it was determined that his $300,000 portfolio would be allocated in the following manner: 50% equities, 40% bonds and 10% cash. Over the course of the next year, the equities in his portfolio appreciated by 10%, the bonds appreciated by 10% and the cash portion grew by 4%. In order to re-balance his portfolio, the investment manager would be required to
- sell $600 worth of equities, sell $360 worth of bonds, and buy $960 worth of cash.
- sell $900 worth of equities, sell $720 worth of bonds, and buy $1,620 worth of cash.
- sell $1,200 worth of equities, buy $820 worth of bonds, and buy $380 worth of cash.
- sell $2,400 worth of equities, buy $1,600 worth of bonds and buy $800 worth of cash.
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