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?

A.

$8,900

OB. $8,500

C.

$8.288

D.

$8,100

Question

Mathematics

Aron Mcbride

Today, 18:10

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?

A.

$8,900

OB. $8,500

C.

$8.288

D.

$8,100

+3

Answers (2)

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Rigoberto · Answer 1

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?

A.

$8,900

B.

$8,500

C.

$8,288

D.

$8,100

Step-by-step explanation:

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