Kunal Nayyar from London, had $40,000 in investments in the USA at the beginning of the year that consisted of a diversified portfolio of stocks (40 percent), bonds (40 percent), and cash equivalents (20 percent). His returns over the past 12 months were 14 percent on stocks, 7 percent on bonds, and 2 percent on cash equivalents.

1. What is Kunal's average % return for the year? Round your answer to one decimal place.

1. If Kunal wanted to rebalance his portfolio to its original position, what specific actions should he take?