Consisted of diversified portfolio of stocks and bonds

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Reference no: EM131185037

Kunal Nayyar from California, had $50,000 in investments at the beginning of the year that consisted of a diversified portfolio of stocks (40 percent), bonds (40 percent), and cash equivalents (20 percent). His returns over the past 12 months were 13 percent on stocks, 6 percent on bonds, and 1 percent 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 actions should he take?

Reference no: EM131185037

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