FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Transcribed Image Text:1. Assume that George Mason Medical Center has investments in a Building
Replacement Fund with the following balances as of July 15, 2022 listed
by category. The Investment Committee of the Board has approved a
recommendation to reallocate these funds, and to include for the first-time
common stocks from non-US companies. Assume that the portfolio will be
rebalanced on August 1, 2022, to equal the Board's targeted desired
allocation percentages.
George Mason Medical Center
Recommended Asset Allocation for Building Replacement Fund
Rebalancing of Investment Portfolio as of July 15, 2022
Investment Description
Cash and Cash Equivalents
Fixed Income - Domestic Bonds
Fixed Income - International Bonds
Equities Large Cap Growth
Equities - Large Cap Value
Equities- Mid/Small Cap Growth
Equities - Mid/Small Cap Value
Equities International
Total
S
Balance on
7/15/2022
12,000,000
32,000,000
10,000,000
13,000,000
25,000,000
11,000,000
12,000,000
S 115.000.000
Current
Allocation %
10.4%
27.8%
8.7%
11.3%
21.7%
9.6%
10.4%
0.0%
100.0%
Your calculated
Re-balanced
Amounts
5.0%
?
22.0%
?
12.0%
?
11.0%
?
23.0%
?
11.0%
?
10.0%
?
6.0%
?
100.0% $ 115,000,000
Future Desired
Allocation
Transcribed Image Text:Question What are the new balances of the investments after reallocating the
total to match the new allocation percentages? Prepare a Microsoft Excel
spreadsheet that is readable and in good form that will calculate this, using the
future desired allocation %. Assume that the total of the investments has not
changed from July 15.
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