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Do bonds reduce the overall risk of an investment portfolio? Let x be a random variable representing annual percent return for the Vanguard Total Stock
Do bonds reduce the overall risk of an investment portfolio? Letxbe a random variable representing annual percent return for the Vanguard Total Stock Index (all Stocks). Letybe a random variable representing annual return for the Vanguard Balanced Index (60% stock and 40% bond). For the past several years, assume the following data. Computey2
x: | 15 | 0 | 38 | 24 | 31 | 26 | 27 | -15 | -15 | -24 |
y: | 10 | -3 | 27 | 18 | 25 | 18 | 18 | -3 | -4 | -10 |
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