We have the following: Bonds, Stocks, and cash. The annual return volatilities: For stocks, we have 20%. For bonds, we h
Posted: Thu May 05, 2022 7:55 am
We have the following: Bonds, Stocks, and cash.
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%.
Correlation of stock and bonds is -0.2.
Question here is: What is the expected returns for bonds and
stocks?
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%.
Correlation of stock and bonds is -0.2.
Question here is: What is the expected returns for bonds and
stocks?