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Part I - Short Answers 1. The figure below plots the relationship between US stock and bond returns for each year since 1970. Discuss how

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Part I - Short Answers 1. The figure below plots the relationship between US stock and bond returns for each year since 1970. Discuss how you can take advantage of the correlation between stock and bond returns to improve the performance of your portfolio. (5 pts) 35 25 Bond 1 15 10 -50 40 -30 -20 -1050 10 30 40 50 -10 -15 Stock Part I - Short Answers 1. The figure below plots the relationship between US stock and bond returns for each year since 1970. Discuss how you can take advantage of the correlation between stock and bond returns to improve the performance of your portfolio. (5 pts) 35 25 Bond 1 15 10 -50 40 -30 -20 -1050 10 30 40 50 -10 -15 Stock

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