Market Concepts oomberg L.P. rolatility volatility urns from indices lividends arison minal uity and bond returns returns Considering the maximum losses and gains for bonds and equities, how does this inform the construction of a balanced portfolio for an individual with a moderate risk tolerance? Such an individual should invest solely in bonds due to their predictable returns and lower risk. Such an individual should invest solely in equities due to their unlimited potential for gains. Such an individual should have a mix of bonds and equities, leveraging the safety of bonds and growth potential of equities