Question: 4. A dynamic asset allocation model is described as: Dollars Invested in Stock =2 (Assets-Floor). Where assets are $700 and floor is desired to be

4. A dynamic asset allocation model is described as: Dollars Invested in Stock =2 (Assets-Floor). Where assets are $700 and floor is desired to be $550. a) Calculate the initial asset allocation to stocks and bonds. b) If stock falls by 15%, calculate the new asset allocation to stocks and bonds

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