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Question 2: You are provided with a client's investment as follows: Total investments = $45,000,000 Risky Assets balance (Amazon, AT&T, VZ) = $11,000,000 Asset Allocation

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Question 2: You are provided with a client's investment as follows: Total investments = $45,000,000 Risky Assets balance (Amazon, AT&T, VZ) = $11,000,000 Asset Allocation V. 35 ATAT, KA AMAZON 39 MASON (a) How much of each stock you need to buy or sell to rebalance the risky portfolio proportion y to 0.25? [4 marks] (b) How much of each stock you need to buy or sell to rebalance the whole portfolio to $20,000,000, assuming you keep the risk free balance constant? [3 marks] (c) How much of each stock you need to buy or sell to rebalance the whole portfolio to $30,000,000, assuming you keep the risky asset portfolio balance constant, and each stock would represent 1/3 of the risky assets value? [3 marks]

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