14. Large U.S. Stock
Small U.S. Stock
Bonds
Cash
Annual
Return
Standard
Deviation
0.0% 5.0% 10.0%
Multi-Asset Portfolio, 1948 to 1981,
annually averaged a return of 9.5%.
• Different asset classes performed differently.
• Asset allocation and diversification worked.
• Modern Portfolio Theory worked.
40%
30%
20%
10% 9.5%
11.8%
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