We have the following: Bonds, Stocks, and cash Annual Expected Returns: For stocks, we have 7%. For bonds, we have 2%. T
Posted: Thu May 05, 2022 7:55 am
We have the following:
Bonds, Stocks, and cash
Annual Expected Returns: For stocks, we have 7%. For
bonds, we have 2%.
The annual return volatilities: For stocks, we have 20%.
For bonds, we have 10%.
Risk tolerance: 0.25.
Allocation of John, the investor: For stocks, we have
35%. For bonds, we have 45%. The remaining goes to
cash.
Question here is: What is the expected returns for bonds
and stocks?
Bonds, Stocks, and cash
Annual Expected Returns: For stocks, we have 7%. For
bonds, we have 2%.
The annual return volatilities: For stocks, we have 20%.
For bonds, we have 10%.
Risk tolerance: 0.25.
Allocation of John, the investor: For stocks, we have
35%. For bonds, we have 45%. The remaining goes to
cash.
Question here is: What is the expected returns for bonds
and stocks?