MM MUTUAL

Time Period 1: Stock Price $21.18 - Shares 1,000 - Fund NAV $21.18 - Shares 1,000

Time Period 2: Stock Price $29.65 - Shares (Blank) - Fund NAV $19.08 - Shares (Blank)

Refer to the info above:

Assume you are using a variable-ratio plan. You have decided that when the speculative portfolio reaches 57% of the total, you will reduce its proportion to 43%. What action, if any, should you take in time period 2? Be specific.

The total value of the portfolio is $______

The percentage that the speculative portion represents is ______%

The number of shares of the stock you should sell is ________

The number of shares of the MM fund you should purchase is ________