Kunal Nayyar from London, had $50,000 in investments in the USA 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...

a 78 40 13 40 6 20 1 b His entire portfolio is now wo ...

Kunal Nayyar from London, had $50,000 in investments in the USA at the beginning of the year

Question:

Kunal Nayyar from London, had $50,000 in investments in the USA at the beginning of the year that consisted of a diversified of (40 percent), bonds (40 percent), and cash equivalents (20 percent). His returns over the past 12 months were 13 percent on 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 to its original position, what specific actions should he take?
Stocks
Stocks or shares are generally equity instruments that provide the largest source of raising funds in any public or private listed company's. The instruments are issued on a stock exchange from where a large number of general public who are willing... Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...