The IPC has noticed that the optimal allocations of sub-period 1 and sub-period 2 are quite different (based on different scenarios of target returns and investment limits). They asked why. (Hint: Check the economic background and market conditions). Would you please explain to them?

OP 1 subperiod 1

OP 2 SUBPERIOD 2

Asset Classes	(2) Portfolio Weights
	4% risk-free rate
	OPA4	OP14	OP2
1 US Large Cap	0.000000	0.000000	1.000000
2 US Small Cap	0.000000	0.000000	0.000000
3 Global Equity - DM	0.000000	0.000000	0.000000
4 Global Equity - EM	0.000000	0.000000	0.000000
5 Commodities	0.000000	0.000000	0.000000
6 US Real Estate	0.201252	0.201250	0.000000
7 Cash	0.000000	0.000000	0.000000
8 US Treasury Bonds	0.000000	0.000000	0.000000
9 US IG Corp Bonds	0.000000	0.000000	0.000000
10 US HY Corp Bonds	0.798748	0.798750	0.000000
11 Global HY Corp Bonds	0.000000	0.000000	0.000000
12 Global IG Corporate Bonds	0.000000	0.000000	0.000000
13 Global Treasury Bonds	0.000000	0.000000	0.000000