Historically the appreciation rates for different asset classes are not the same. Averaged over the past 40+ years, US stocks grew about 13.8% per year, real estate about 12.5%, foreign stock about 11.2%, and bonds about 6.4%. Compare the performance of these 2 portfolios: (A) $50,000 each into US stock and bonds, and (B) $50,000 each into real estate and foreign stock. 

What will be the difference in total value between (A) and (B) if these portfolios had been held for 5 years?

Answer rating: 100% (QA)

To compare the performance of the two portfolios A and B over a 5year period we will use the histori... View the full answer