Can someone please explain this to me? "Although the 28% weighting in international equities is within the tolerance band under the percentage of portfolio rebalancing approach, the 45% weighting in U.K. fixed income is outside the tolerance band. Thus, all asset classes would be rebalanced to target weights. " My question is that how is Fixed Income outside the Band when the corridor is +/- 10%? Thanks alot.
It’s 10% of 30%, or whatever the allocation is.
The corridor is +/-10% *of* 40% = 4%, So breach when FI is < 36% or > 44%, in this case it was 45%-- so breached
Wow. Completely misread what that meant. OK great. Still managed to “pass”, but I cant let easy points on the table! Thanks again guys.