Portfolio of stocks and bonds with constant mix strategy

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Suppose you are managing a $1,000,000 portfolio of stocks and bonds with a constant mix strategy of 50% stocks and 50% bonds. If the stock market increases 20% and the bond market increases 10%, rebalancing would require A) selling $25,000 in bonds and buying $25,000 in stocks B) selling $50,000 in bonds and buying $50,000 in stocks C) selling $50,000 in stocks and buying $50,000 in bonds D) selling $25,000 in stocks and buying $25,000 in bonds.

Reference no: EM132054879

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