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Question 1 2 You determine that the appropriate balance for your investment - risk tolerance is a 7 0 - 2 0 - 1 0

Question 12
You determine that the appropriate balance for your investment-risk tolerance is a 70-20-10 proportion (stocks, bonds, and cash). After the first year, your $10,000 investment doubled in value to $20,000, with $16,000 in stocks, $2,750 in bonds, and $1,250 in cash. How should your assets be allocated to retain your risk proportions?
A. Sell $2,000 in stocks, buy $1,250 in bonds, and add $750 in cash
B. Sell $1,000 in stocks, buy $2,250 in bonds, and add $750 in cash
C. Buy $1,000 in stock, sell $2,250 in bonds, and reduce cash by $750
D. Buy $2,000 in stock, sell $1,250 in bonds, and reduce cash by $750
E. Not enough current information to determine asset allocation.
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