Question $2$

How much is an investor's tolerance for risk'worth over a long horizon? Calculate the difference in accumulation in real terms for an investor who initially invests $$25,000$ and ignores it for $20$ years in either a long$-$term Treasury bond portfolio or a portfolio of diversified common stocks. Assume the historic real returns of $2\mathrm{.}1$ percent annually for bonds and $9\mathrm{.}3$ percent for common stocks.