A portfolio constructed with 60% stocks and 40% bonds can provide a smoother return over time compared to an all-stock portfolio because stocks and bonds are generally low to negatively correlated.

Authors

• Person: Not available Organization: Pressbooks
  Chapter 8 – Risk and Return – Fundamentals of Finance

Sources

• Chapter 8 – Risk and Return – Fundamentals of Finance pressbooks.pub Pressbooks via serper

Referenced by nodes (3)

• stocks concept
• bonds concept
• portfolio concept