Describe the actions antonio should take to rebalance

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Question: Antonio Cassini is using a constant-ratio plan to rebalance his portfolio. He has 300 shares of an aggressive growth stock priced at €50 (Euro) and the rest of his portfolio invested in Italian government bonds priced at par (100%) with a total value of €5,000. Considering he has put a rebalance trigger of speculative-to-conservative of 2.5 and that, after a month, the price of the Italian government bond increases to 110%, describe the actions Antonio should take to rebalance his portfolio.

Reference no: EM131627202

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