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