Assume you have \(\$ 100,000\) to invest for one year, and decide to allocate \(60 \%\) to an all equity fund trading at \(\$ 400\) per share and \(40 \%\) to a bond fund trading at \(\$ 100\) per share. After one year, the equity fund is trading at \(\$ 450\) per share and the bond fund is trading at \(\$ 95\) per share.

(a) What is the value of your portfolio after one year?

(b) What is the 1-year rate of return on your portfolio?

(c) What are the allocations of your portfolio after one year?

(d) How do you rebalance your portfolio to maintain allocations at \(60 / 40\) ?