8. Here are ten years of returns on portfolios of small stocks, large stocks, bonds,...
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8. Here are ten years of returns on portfolios of small stocks, large stocks, bonds, . wills along with a beginning year, 0 . Circle your answers please. B. John is a contrarian investor. That is, for the asset class that did the worst a year ago, he decides to invest his entire portfolio into that asset class this year-thinking that that the returns on that asset class will improve. For example, in Year 1, he would have all his wealth in Large Stocks, because Large Stocks did the worst in Year 0 . He rebalances his portfolio every year. How much money will John have at the end of Year 10, assuming a $1 initial investment? ( 15 points) Hint: Fill out the blanks in the table below, as needed
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