Consumer VL #22 | Diversification

What is the average annual return

if someone invested 100% in bonds?

• 5.0%

• 9.2%

• 35.1%

• 12.1%

What is the average annual return

if someone invested 100% in stocks?

• 5.0%

• 9.2%

• 35.1%

• 12.1%

Which has a highest risk?

(based on the worst returns)

• 100% stocks

• 100% bonds

• 50% stocks

  50% bonds

Which has a lowest risk?

(based on the worst returns)

• 100% stocks

• 100% bonds

• 50% stocks

  50% bonds

Which has a higher average annual return?

• 90% stocks

  10% bonds

• 10% stocks

  90% bonds

Use evidence from this graph to explain the value of investing in both stocks & bonds — not just one or the other.