In the 2010 L3 Exam in Question 8, a +/- 10% corridor width (see below) is applied proportionally on all asset classes, e.g. +/- 10% x Asset class of e.g. 40% = 36% to 44%.
_“Malik suggests that Brown consider percentage-of-portfolio rebalancing with daily monitoring and rebalancing to target weights. He offers to demonstrate how the two approaches would differ after rebalancing on 1 April, given the allocations shown in Exhibit 1, with tolerance bands or corridor widths set at ± 10% of the target allocation _.”
HOWEVER, in the asset allocation book, page 281 example 22, the author is applying the 10% in absolute terms, e.g. 45% +/- 10% = 35% to 55%.
Appreciative of your help!