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You decide to implement a passive investment strategy, targeting and initially holding 80% in stocks and 20% in bonds. At the beginning of the year,
You decide to implement a passive investment strategy, targeting and initially holding 80% in stocks and 20% in bonds. At the beginning of the year, you allocate $1000 according to these percentages. During the year, stocks returned 10% and bonds returned 4%.
At the end of the year, you want to rebalance your portfolio so it has the same 80/20 split as you started with. You are investing an additional $1000 of saved money. How much of that $1000 should be put into stocks so the split is maintained?
$790.4 | ||
$209.6 | ||
$800 | ||
$0 |
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