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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 (Sm)

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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 (Sm) 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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