Kunal Nayyar from California, had $50,000 in investments at the beginning of the year that consisted of a diversified portfolio of stocks (40%), bonds (40%), and cash equivalents (20%). His returns over the last year were 13% on stocks, 6% on bonds, and 1% on cash equivalents. a.) What is Kunal's average return for the year? b.) If Kunal wanted to rebalance his portfolio to its original position, what specific action should he take?
Kunal Nayyar from California, had $50,000 in investments at the beginning of the year that consisted of a diversified portfolio of stocks (40%), bonds (40%), and cash equivalents (20%). His returns over the last year were 13% on stocks, 6% on bonds, and 1% on cash equivalents. a.) What is Kunal's average return for the year? b.) If Kunal wanted to rebalance his portfolio to its original position, what specific action should he take?
Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
7th Edition
ISBN:9780357033609
Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Chapter13: Investing In Mutual Funds, Etfs, And Real Estate
Section: Chapter Questions
Problem 7FPE
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Kunal Nayyar from California, had $50,000 in investments at the beginning of the year that consisted of a diversified portfolio of stocks (40%), bonds (40%), and cash equivalents (20%). His returns over the last year were 13% on stocks, 6% on bonds, and 1% on cash equivalents.
a.) What is Kunal's average return for the year?
b.) If Kunal wanted to rebalance his portfolio to its original position, what specific action should he take?
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