Question: Historically the appreciation rates for different asset classes are not the same. Averaged over the past 40+ years, US stocks grew about 13.8% per year,

Historically the appreciation rates for different asset classes are not the same. Averaged over the past 40+ years, US stocks grew about 13.8% per year, real estate about 12.5%, foreign stock about 11.2%, and bonds about 6.4%. Compare the performance of these 2 portfolios: (A) $50,000 each into US stock and bonds, and (B) $50,000 each into real estate and foreign stock.

What will be the difference in total value between (A) and (B) if these portfolios had been held for 5 years?

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