Q1. Portfolio Rebalancing You have 100 million dollars in your investment account and...
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Finance
Q1. Portfolio Rebalancing
You have 100 million dollars in your investment account and choose to keep your money allocated in the following proportion and rebalance each quarter:
i. 60% in stocks via ETF SPY;
ii. 35% in bonds via ETF TLT.
iii. 5% in cash
Over the month of Sep, SPY went from $452 to $429, and TLT went from $149 per share to $144 per share. Cash has an interest rate of 0.1% annually.
a. What is your overall account $ balance before rebalancing? What proportion of that is in SPY, TLT, and CASH respectively? (5 points)
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