What if Matilda decided to split her money across U.S. shares and Australian shares. Estimate the return she would have got in each year if she had a 50/50 split between the two. What happens to the risk that she loses money in any year in this portfolio? Why has this happened? You will need a calculation to support your answer. (150 words max) 10%

US Shares Australian Shares Australian Bonds Source: Vanguard Ittps://insights vanguard.com.au/static/ 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 7.0% -4.3% -29.2% -3.8% 6,6% 12.1% 7.8% -5.3% -20.7% -2.0% 1.0% 2.1% 14.6% 53.6% 24.3% 14.0% 12.5% 12.8% 6.2% 31.7% 7.9% 5.0% 10.1% -8.1% 15.9% 27.6% 21.1% 25.0% 18.0% .40.4% 39.6% 3.3% -11,4% 18.8% 19.7% 5.0% 3.8% 11,6% 12.5% -3.5% 24.1% 3.6% 12.1% 5.4% 8.8% 3.0% 7.0% 5.8% 3.1% 3.5% 14.9% 1.7% 6,0% 11.4% 7.7% 2.0% 9.8% 2.6% 2.9% 3.7% 4.5% 7.3% 4.5% US Shares Australian Shares Australian Bonds Source: Vanguard Ittps://insights vanguard.com.au/static/ 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 7.0% -4.3% -29.2% -3.8% 6,6% 12.1% 7.8% -5.3% -20.7% -2.0% 1.0% 2.1% 14.6% 53.6% 24.3% 14.0% 12.5% 12.8% 6.2% 31.7% 7.9% 5.0% 10.1% -8.1% 15.9% 27.6% 21.1% 25.0% 18.0% .40.4% 39.6% 3.3% -11,4% 18.8% 19.7% 5.0% 3.8% 11,6% 12.5% -3.5% 24.1% 3.6% 12.1% 5.4% 8.8% 3.0% 7.0% 5.8% 3.1% 3.5% 14.9% 1.7% 6,0% 11.4% 7.7% 2.0% 9.8% 2.6% 2.9% 3.7% 4.5% 7.3% 4.5%