Targets and bands

A policy lists targets of reserve 30%, beta 50%, carry 20% and satellites 10%. What is wrong?

• Nothing, as long as each number was chosen carefully
• They add up to 110%, so at least one target can never be met
• Satellites should always be the smallest sleeve

The rule says "trade when a sleeve is 5 points or more from target". Which sleeve trades?

• One that is 4.9 points under target
• One that is exactly 5.0 points over target
• Neither, because both are close to the line