You are looking at the California Pension Fund website. The asset allocation breakdown is as follows:

60% Stocks

30% Bonds

10% Real Estate

For next year you estimate that stocks will earn 12%, bonds 3% and real estate 20%. What do you think their overall expected return will be for the year?

Also, you note that the mix had changed from the year before. The prior year they had allocated 65% to stocks. What does this tell you that might help your investing strategy?