Evaluating Rebalancing Strategies for Portfolio Management

Emily is a portfolio manager for a high-net-worth client with a diversified investment portfolio consisting of equities, fixed income, and alternative investments. The portfolio was initially allocated as follows: 60% equities, 30% fixed income, and 10% alternatives. Due to recent market fluctuations, the value of the equity portion has significantly increased, and now constitutes 70% of the portfolio.

Emily believes that the portfolio should maintain its original allocation strategy to manage risk effectively. She is considering several rebalancing strategies to return the portfolio to its target allocation. Which of the following strategies is the most effective for achieving the desired reallocation in a cost-effective manner?