Sorry if this was already asked: The rebalancing question the 2010 mock confused the hell out of me. Said to rebalance the whole portfolio because U.K. fixed income was out of the corridor limits? I think it had a corridor limit of +/- 10% and Fixed income was at 40% and went to 45 and it said to rebalance. Wouldn’t it have to go to 50%? I was confused by this.
36%-44% 45>44 if a asset class is 10% do you think its range is 0-20%?
Yea that’s actually what I thought after reading the book. +/- 10% of 40% would be 30-50%. 36-44 is only 9% though?
Never mind. I got it now. 40% * .90 and 40% * 1.10, 36-44% Thanks