A 65 - year old man is in the first year of his retirement . He has accumulated $ 800,000 in his 401k which he expects t

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A 65 - year old man is in the first year of his retirement . He
has accumulated $ 800,000 in his 401k which he expects to earn a 7
% return on in the future . When he retires next year he will need
$ 77,000 in order to fund his retirement ; $ 21,000 of that will
come from Social Security and the remaining $ 56,000 per year will
come from his 401k . His current portfolio allocation is 60 % in
stocks ( expected future return equals 10 % ) , 30 % in bonds (
expected future return equals 3 % ) , and 10% in cash ( expected
future return equals 1% ) .
Question:
1/ This individual has a portfolio that is diversified between
stocks , bonds , and cash . Do you believe he has sequence of
returns risk ? Explain why or why not .