If the market falls by 20%, your S&P 500 investment will fall from $80 million to $64 million. Your private equity is not revalued, so it remains valued at $20 million. Now private equity has increased as a percentage of your portfolio, from 20% to 23.8% (= $20m/($64m + $20m)), known in the industry as the "denominator effect." Let's say that you are the CIO of a pension fund. At this point, your management or board of directors call you and say, "We don't want to be 24% invested in private equity! We only want to invest 20% in private equity!" What do you tell them? What can you do?

a) Explain the impact of revaluing private equity to align with the desired percentage.
b) Explore options for rebalancing the portfolio without selling private equity.
c) Discuss the implications of selling some private equity to adjust the allocation.
d) All of the above