Educational material from 
What you will learn
- Convert supplied target percentages into money amounts and quantities.
- Reconcile how a simulated sale funds the chosen purchase.
- Show when whole shares prevent an exact target allocation.
The allocation is a rule of the task
Write targets of 50 percent A, 30 percent B and 20 percent cash, using the whole model account as the base. This is not a recommended real-world portfolio. Allow 25 minutes and hold prices constant: A costs SEK 50 and B costs 40. Starting holdings are 24 A, ten B and cash of 400, totalling 2,000.
The model uses whole shares without borrowing, fees, taxes, deposits or dividends. Both trades are assumed executable at the supplied prices and recorded immediately. Investor.gov describes rebalancing as restoring an allocation. Our worksheet practises the reconciliation itself and offers neither a particular schedule nor a buying strategy as personal guidance.
If the table does not fit, scroll it sideways.
| Component | Start, SEK | Target, SEK |
|---|---|---|
| A | 1,200 | 1,000 |
| B | 400 | 600 |
| Cash | 400 | 400 |
| Total | 2,000 | 2,000 |
Build the trade list before the ending card
Target amounts are 2,000 × 0.50 = SEK 1,000 in A and 2,000 × 0.30 = 600 in B. At our prices these mean twenty A and fifteen B. Sell four A for 200 and buy five B for 200. After the sale cash is 600; after the purchase it is 400.
The ending card has 20 × 50 = 1,000 in A, 15 × 40 = 600 in B and cash of 400. Total remains 2,000, with weights of 50, 30 and 20 percent. Under these frictionless rules, trades moved value between components. Reaching the target weights did not itself create a profit.
Change A’s price and test whether the target is possible
A separate starting case has twenty A at SEK 60, ten B at 40 and cash of 400. Total is again 2,000. A’s target amount of 1,000 requires 1,000 / 60 ≈ 16.67 shares, which the whole-share rule forbids. Exactly 50 percent A is therefore impossible at the supplied fixed prices.
Sell three A and buy five B: seventeen A are worth 1,020, fifteen B are worth 600 and cash is 380, giving weights of 51, 30 and 19 percent. Instead sell four A and buy five B: A is 960, B is 600 and cash is 440, giving 48, 30 and 22. Neither outcome is exact; describe each deviation without calling one best.
Check the rules behind every proposed outcome
Have a partner add the ending components and trace them back to every trade. State whether cash is included in the weight base: here it always is. Using only share value would give different target amounts and percentages. Do not change the target, prices or permission to use fractional shares afterwards merely to produce a neat answer.
Actual transactions have different conditions, and a target guarantees neither return nor risk level. Connect the task to Investiq’s portfolio guide and the weights lesson. The worksheet promises no automatic rebalancing, recommended allocation or exact order execution in the app. It makes a practice choice explicit and checkable on paper.
Try it yourself
Use the separate starting case with twenty A at SEK 60, ten B at 40 and cash of 400. Sell three A and buy five B. What ending weights result? Is the target of 50/30/20 exactly reached?
Show the solution and explanation
Ending values are A SEK 1,020, B SEK 600 and cash SEK 380. Weights are 51, 30 and 19 percent; the target is not reached exactly.
Cash is 400 + 3 × 60 − 5 × 40 = 380. A is 17 × 60 = 1,020; B is 15 × 40 = 600. Total is 2,000, giving 51/30/19.
Check your understanding
Do the main case’s two trades create profit at fixed prices without fees?
No. Total is 2,000 before and after.
Can A’s target of 1,000 be reached exactly with whole shares at 60?
No. It requires about 16.67 shares, which the rules exclude.
Practise with virtual money
Try what you just learned in a practice portfolio with virtual money. You don't deposit any real money.
How the practice portfolio worksKeep learning and practising
More activities on this topic
Reconcile a practice portfolio
Sources and examples
The sources support the factual explanations. Calculations and exercises were created for this lesson. Amounts and price changes are invented unless stated otherwise.
This material is educational and does not recommend securities to buy. A simulated result does not guarantee a future result.
