Your Dad has decided to retire early. As part of his personal financial planning process, he has determined that he needs an investment portfolio that will achieve an 8% total return (his personal benchmark). His investment advisor has suggested the following portfolio:

a) What is the expected return on this portfolio?

b) Is the portfolio appropriate for your Dads needs? Explain.

Small Cap Stocks Large Cap Stocks Long-Term Bonds Short-Intermediate Bonds Expected Return % % Weights for Investment 12% 10% 10% 50% 9% 35% 5% 6%