Question: Referring to the retirement example in Example 12.7, rerun the model for a planning horizon of 10 years; 15 years; 25 years. For each, try

Referring to the retirement example in Example 12.7, rerun the model for a planning horizon of 10 years;

15 years; 25 years. For each, try to find the set of investment weights that maximize the VAR (the 5th percentile) of final cash in today’s dollars. Does it appear that a portfolio heavy in stocks is better for long horizons but not for shorter horizons?

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