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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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