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Section C (4 Mark)Paridhi has an investment portfolio of Rs.

Section C (4 Mark)

Paridhi has an investment portfolio of Rs.2,00,000; the initial portfolio mix is Rs.1,00,000 in stocks, Rs.60000 bonds and Rs.40000 in bank.

If market goes up by 10% and the value of bonds decreases by 10%, what should Paridhi do under the constant mix policy?

A.

She should sell Rs.8000 of stocks, buy bonds worth Rs.7200 and deposit Rs.800 in bank

B.

She should sell Rs.7000 of stock and buy bonds worth Rs.3000 and Deposit Rs.2000 in bank.

C.

She should buy his portfolio equally

D.

She should sell his portfolio equally

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