Mr. Slater invested $100,000 in a portfolio that is contains 60% stocks and 40% bonds. Over the course of a year, the value of the stocks increased to 67%, and the value of the bonds decreased to 33%. The current value of his investment is $118,400. How much should Mr. Slater move from stocks to bonds to rebalance his portfolio to 60% stocks and 40% bonds?

Question

01-06-2022
Business

Answered

Westonci.ca is the premier destination for reliable answers to your questions, provided by a community of experts. Get quick and reliable solutions to your questions from a community of seasoned experts on our user-friendly platform. Get precise and detailed answers to your questions from a knowledgeable community of experts on our Q&A platform.

Mr. Slater invested $100,000 in a portfolio that is contains 60% stocks and 40% bonds. Over the course of a year, the value of the stocks increased to 67%, and the value of the bonds decreased to 33%. The current value of his investment is $118,400. How much should Mr. Slater move from stocks to bonds to rebalance his portfolio to 60% stocks and 40% bonds?

Sagot :

We hope our answers were useful. Return anytime for more information and answers to any other questions you have. Thank you for choosing our platform. We're dedicated to providing the best answers for all your questions. Visit us again. Your questions are important to us at Westonci.ca. Visit again for expert answers and reliable information.

Question 43 0.4 pts Which of the following is not a characteristic of the Monopsony labor market model? O Numerous firms compete with one another in hiring a s

The inclusion of seasonal dummy variables to a multiple regression model may help eliminate autocorrelation if the data are characterized by seasonal fluctuatio

the results of the critical incident stress debriefing (cisd) program werehighlighted in the text to make what point

How did women contribute to the social reforms that took place in Europe during the 19th century? O A. Working-class women accepted limited economic rights in e

Find all the solutions of the systems of equations algebraically. Write your solutions as coordinate points. Help please !!!

When a system changes from A to B along the path shown on the pressure-versus-volume graph, it gains 2300 J of heat. What is the change in the internal energy o

What was one empowering change for freed Black Americans during Reconstruction? O A. Reconstruction enabled Black Americans to become economically independent w

what was found in the trap of the miller–urey apparatus that supports a hypothesis for the beginning of early life?

Tommy and his cousin Susan are picking apples in their grandparents' orchard. Tommy has filled 5 baskets with apples and is filling them at a rate of 6 baskets

How was music used during the Great Depression?; Which was a social consequence of the Great Depression?; Which of the following was a consequence of the Great

chilljain33 chilljain33 · Answer 1 · 2022-06-02T05:38:19-04:00

Mr. Slater is advised to divest his investment in stocks by $8,288 to rebalance his portfolio in the desired ratio.

What is portfolio rebalancing?

The process of investing or divesting as per the changing behavior and desired returns of the consumer in different classes of investment is known as portfolio rebalancing.

Using the given information, it can be calculated that if Mr. Slater divests his $8288 in bonds from stocks, his portfolio will be rebalanced in the desired ratio.

Hence, the amount to be divested by Mr. Slater to rebalance portfolio is aforementioned.

Learn more about portfolio rebalance here:

https://brainly.com/question/13407939

#SPJ1

Sagot :

What is portfolio rebalancing?

Other Questions