2010 AM Exam Q8A/D, Q9A

Q8A Under percentage-of-portfolio rebalancing, shall it be (27% -> 30%, 28% remain unchanged, 45% - 40%) ? The solution said : Thus, all asset classes would be rebalanced to target weights. Confused !! Q8D A. Although “Realized Profit/Loss (%)” and “Delay Costs(%)” are not required, I tried to figure them out. Is “Realized Profit/Loss (%)” = [(10.24-10.25) x 6,000]/(10.25x20,000]

Q8A No, if one is outside the range you rebalance the entire portfolio. Q8D It’s a negative cost, which is good. Delay cost is 0, this all took place on the same day. Q9A Portfolio relative to benchmark. Q9B I don’t know what you’re referring to and have no idea how it relates to the question. All they’re asking is to identify the sources of excess return.