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The table below presents target allocations and corridor rules for a multi-asset class portfolio, alongside five returns scenarios. Target allocation (%) Maximum Scenario A Scenario

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The table below presents target allocations and corridor rules for a multi-asset class portfolio, alongside five returns scenarios. Target allocation (%) Maximum Scenario A Scenario B Scenario CScenario D Scenario E percentage (% return) (% return) (% return) % return) % return) change % of target allocation) 15 -30 15 25 25 15 60 Equities Fixed income 25 20 10 -20 15 -15 10 Real estate 15 25 5 5 -20 10 -5 What would be the appropriate rebalancing action under Scenario E if you follow the percentage-of- portfolios rebalancing method? Buy real estate only Buy fixed income only O No action required Buy fixed income: Sell real estate O Buy equities: Sell fixed income

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