Rebalancing a Portfolio after Equity Gains

As a portfolio manager, you are responsible for monitoring the risk exposure and performance of your client's investment portfolio. Over the last quarter, the equities in the portfolio have performed exceptionally well, leading to a significant shift in the overall asset allocation. The target allocation was 60% equities and 40% fixed income, but the current allocation is now 75% equities and 25% fixed income.

Given this change, you need to decide how to approach rebalancing the portfolio to align it back with the target allocation. Which of the following strategies would best support your goal of maintaining the intended risk profile of the portfolio?