8 Oct 22 Nov 22 Dec 22 Expected Annual Return Monthly returns are compounded to calculate annual returns. Portfolio Allocation Client Frugal Tim Actual Portfolio Return Client Frugal Tim Spendthrift Elizabeth Domestic Equities 5% 45% Spendthrift Elizabeth Assume the above asset weightings remain unchanged throughout the year. Covariance Matrix Asset Class Domestic Equities Overseas Equities Fixed-Income Nominal Bonds Inflation-Linked Bonds Real Estate Cash and Cash Equivalent Variances within Portfolio Client Frugal Tim Spendthrift Elizabeth Results Client 3.46% (0.42%) 2.18% 12.87% Frugal Tim Spendthrift Elizabeth % p.a. Domestic Equities Domestic Equities Actual Return www. 4.15% (1.19%) 2.96% 0.54% Overseas Equities 10% 50% Overseas Equities Overseas Equities Portfolio Variance 0.83% (0.24%) 0.59% 2.55% Fixed Income Nominal Bonds 15% 0% + Fixed Income Nominal Bonds Fixed Income Nominal Bonds Standard Deviation (Volatility) 1.10% (0.31%) 0.79% 3.74% Inflation Linked Bonds 20% 0% Inflation Linked Bonds Infla