Rebalancing a Portfolio to Maintain Target Allocation

Imagine an investor has established a target asset allocation for their portfolio: 60% equities and 40% fixed income. Due to market movements, the value of equities has increased significantly, and their current allocation stands at 70% equities and 30% fixed income.

To maintain the target allocation, the investor needs to consider rebalancing the portfolio. Rebalancing is an essential part of portfolio management that helps maintain the intended asset allocation and manage risk.

Which of the following actions should the investor take to achieve their target allocation?