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What trades are required to rebalance the portfolio back to target? (6 marks) Previous Portfolio Asset Current Current Difference Actual ($m) Target Return Actual ($m)
What trades are required to rebalance the portfolio back to target? (6 marks)
| Previous | Portfolio | Asset | Current | Current | Difference |
| Actual ($m) | Target | Return | Actual ($m) | Weight | To Target |
Equities | 70 | 70% | 11% | 77.70 | 71.28% | 1.28% |
Bonds | 25 | 25% | 5% | 26.25 | 24.08% | -0.92% |
Cash | 5 | 5% | 1% | 5.05 | 4.63% | -0.37% |
Total | 100 | 100% | 9% | 109.00 | 100.00% |
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