You Determine That the Appropriate Balance for Your Investment-Risk Tolerance

question 43

Multiple Choice

You determine that the appropriate balance for your investment-risk tolerance is a 70-20-10 proportion (stocks,bonds,and cash) .After the first year,your $10,000 investment has doubled in value to $20,000,with $16,000 in stocks,$2,750 in bonds,and $1,250 in cash.How should your assets be allocated to retain your risk proportions?

• A)Sell $2,000 in stocks,buy $1,250 in bonds,and add $750 in cash
• B)Sell $1,000 in stocks,buy $2,250 in bonds,and add $750 in cash
• C)Buy $1,000 in stock,sell $2,250 in bonds,and reduce cash by $750
• D)Buy $2,000 in stock,sell $1,250 in bonds,and reduce cash by $750

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