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Suppose that you begin an investment program with a portfolio having an asset allocation of 30% bonds, 60% equities, and 10% cash investments. One year
Suppose that you begin an investment program with a portfolio having an asset allocation of 30% bonds, 60% equities, and 10% cash investments.
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.
To rebalance this portfolio back to its original asset allocation, you should sell some of your______ and use the proceeds to purchase additional _____ .
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\begin{tabular}{|c|} \hline cash investments \\ \hline bonds and cash investments \\ \hline equities and cash investments \\ \hline equities and bonds \\ \hline equities \\ \hline bonds \end{tabular}Step by Step Solution
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