To calculate the targeted stock holding, multiply the stock multiplier by (total assets – portfolio floor).
Total assets = $93,000.
Portfolio floor = $70,000.
Stock multiplier = 2.
The new stock holdings = 2 × ($93,000 - $70,000) = $46,000.
Current stock holdings are $57,350, so we must sell $11,350 in stocks to hit the target, which means that the bond holdings will rise by $11,350
