1) Hint: There is no specific 'formula' to use here, you just need understanding of the way weights work. Try to do it with a portfolio of $1000 first if it is hard to do in %.

a. You decide to implement a passive strategy, targeting and initially holding 60% in stocks and 40% in bonds. If during the year stocks go up 10% and bonds go up 4%, what % of your stocks should you sell to move into bonds when rebalancing at the end of the year? (in %, 1 decimal place)

b. Alternatively, assume you initially formed the portfolio with a $1000 investment. If you were investing an additional $500 during the rebalancing period at the end of the year, how much would you need to put into bonds (with the remaining being put into stocks) to be in balance? (round to 1 decimal place)