Arden, Miriam; Woutersen, Tiemen - In: Journal of Risk and Financial Management 14 (2021) 9, pp. 1-5
In the U.S., the geometric return on stocks has been higher than the geometric return on bonds over long periods. We study whether balanced portfolios have a larger geometric return (and expected log return) than stock portfolios when the risk premium is low. We use a theoretical model and...