You have a financial planning client who has an assembled balance sheet represented in the graphic below. The clients home is the primary asset and the corresponding mortgage the primary liability. The client has a positive net worth. Financial assets total $11,980. The stock mutual fund (FBGRX), shares of Microsoft and the stock ETF (VOO) have a value of $5,500. Your client has just gone through a risk profile exercise in which the financial asset recommendation is to be 70% in equities, 8% in bonds and 22% in cash. Whether it is a new stock-based investment or an additional investment in one of the three existing stock investments, what total amount of investment is required in equities to rebalance your clients financial asset portfolio?

A. $7,510

B. $3,780

C. $8,386

D. $8,200

AAA 2,800 2,680 1,000 FINANCIAL ASSET ALLOCATION Cash 45.74% Equities 45.91% Bonds 8.35% ASSETS Cash Savings $ Checking Account $ TIPS $ Brokerage Account Value of stock (MSFT) $ Value of mutual fund (FBGRX) $ Value of ETF (VOO) $ Total Financial Assets $ Car $ House $ Bonds 8% 3,000 1,200 1,300 11,980 19,200 280,000 Equities 46% Cash 46% TOTAL ASSETS S 311,180 $ 2,602 LIABILITIES Credit Cards Car Loan Balance Student Loan Balance Mortgage Balance $ $ 34,000 124,932 $ TOTAL LIABILITIES $ 161,534 NET WORTH $ 149,646