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You follow the constant dollar plan to manage and revise your portfolio. Values and guidelines for portfolio revision are as follows: Initial portfolio value =

  1. You follow the constant dollar plan to manage and revise your portfolio. Values and guidelines for portfolio revision are as follows:

Initial portfolio value = $50,000

Speculative portion = $30,000

Conservative portion = $20,000

Trigger point: A rise or fall in the speculative portion of $2,000 or more than its initial value. Rebalancing action: Bring the speculative portion back to its initial level.

Given the above criterion, complete the table below:

Value of securities in speculative

portion($)

(1)

Speculative

Portion ($)

(2)

Conservative

Portion ($)

(3)

Total Portfolio

Value ($)

(4)

Transactions

(5)

No. of shares in

Speculative

Portion

(6)

50

51

45

45

47

50

50

52

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