Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
use evidence from this graph to explain the value of investing in both stocks and bonds- not just one or the other.
Transcribed Image Text:Best, worst, and average returns for various stock/bond allocations, 1997–2019
Portfolio allocation
Stocks
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Bonds 100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
50%
40%
35.1%
32.3%
29.4%
30%
26.6%
23.7%
20.9%
18.0%
20%
15.2%
12.1%
12.3%
11.2%
6.2%
6.7%
7.1%
7.5%
7.9%
8.3%
8.8%
9.2%
10%
5.0%
5.4%
5.8%
0%
-1.4%
-2.1%
-4.0%
-10%
-8.6%
-13.1%
-20%
-17.7%
-22.2%
-30%
-26.8%
-31.3%
-40%
-35.9%
-40.4%
-50%
I Best returns IWorst returns - Average annual returns
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