Therearealsodifferenceswithinassetclassessmall

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: e and government bonds, or separating international stocks and bonds from domestic assets. How do I determine the best asset allocation? Asset classes differ primarily by their average return and the amount of risk. Stocks typically have higher average returns than bonds but also more risk. There are also differences within asset classes: small‐ cap stocks have more risk than large‐cap stocks; corporate bonds have more risk than Government bonds. The basic approach to asset allocation is to determine the appropriate level...
View Full Document

Ask a homework question - tutors are online