I had mentioned here that Bob would be rebalancing his Bedokian Portfolio with an S$5,000.00 capital injection on 30 June 2017. Let us go through how he did it step by step.
In The Morning
When the market opened at 9:00 AM on 30 June 2017, Bob checked the opening prices of the securities in his portfolio. He then translated the prices to the table below (Fig. 1).
Note: USD 1 = SGD 1.38
Bob added S$5,000.00 to the cash component, bringing it up to S$7,019.22 (see Fig. 2).
Purchasing The Securities
There are now a few ways to allocate this newly injected cash amount among the different securities. If the asset class allocation is still within the designated percentages, he could just make the cash portion at 5% and split the rest accordingly.
Another way is he could work out the …