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possible options 1)bonds and cash investments/ bonds/ equities and bonds/ equities/cash investments/ equities and cash investments. 2) bonds and cash investments/ bonds/ equities and bonds/

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1)bonds and cash investments/ bonds/ equities and bonds/ equities/cash investments/ equities and cash investments.
2) bonds and cash investments/ bonds/ equities and bonds/ equities/cash investments/ equities and cash investments. image text in transcribed
image text in transcribed
Rebalancing Your Portfolio Portfolio rebalancing is the process of bringing your different asset classes (stocks, bonds, and cash) back into proper relationship following a significant change in the value of one or more of them. You should monitor your investments and normally rebalance your portfolio about once a year to return your investments to their proper balance when they no longer conform to your investment plan. Suppose that you begin an investment program with a portfolio having an asset allocation of 40 % bonds,, 25 % equities, and 35% cash investments. Equities 25% Cash 35% Original Asset Allocation: Bonds 40% One year later, you find that some investments have performed better than others. After a year, the portfolio now consists of 40 % bonds, 40 % equities, and 20% cash investments Cash 20% Equities 40% One Year Later: Bonds 40% portfelio needs rebalancing) quibes, and 35% cash investments Equities 2596 Cash 35% Original Asset Allocation: Bonds 40% One year later, you find that some investments have performed better than others. After a year, the portfolio now consists of 40%% bonds, 40 % equities, and 20% cash investments. Cash 20% Equities 40% One Year Later: (portfolio needs rebalancing) Bonds 40% To rebalance this portfolio back to its oniginal asset allocation, you should sell some of your and use the proceeds to purchase additional Save & Conlinue Grade it Now Continut withoutsaurg

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