Capital Markets Expectations Dashboard

Allocation Valid

Total: 100.00%

Asset Allocation

Cash

2.80% annual return

5.0%

Developed Equities

6.70% annual return

40.0%

Emerging Equities

7.20% annual return

10.0%

Investment Grade

5.00% annual return

25.0%

High Yield

6.10% annual return

5.0%

Private Equity

9.90% annual return

8.0%

Real Estate

8.10% annual return

5.0%

Hedge Funds

6.00% annual return

2.0%

10-Year Assumptions

Cash2.8%

Developed Equities6.7%

Emerging Equities7.2%

Investment Grade5.0%

High Yield6.1%

Private Equity9.9%

Real Estate8.1%

Hedge Funds6.0%

Expected Return

6.41%

10-year annualized

Volatility (Risk)

10.93%

Standard deviation

Sharpe Ratio

0.33

Risk-adjusted return

Return Contribution by Asset Class

How each asset class contributes to the portfolio's expected return

Portfolio Allocation

Distribution across asset classes

Detailed Breakdown

Allocation and return contribution

Cash

2.80% expected return

5.0%

+0.140%

Developed Equities

6.70% expected return

40.0%

+2.680%

Emerging Equities

7.20% expected return

10.0%

+0.720%

Investment Grade

5.00% expected return

25.0%

+1.250%

High Yield

6.10% expected return

5.0%

+0.305%

Private Equity

9.90% expected return

8.0%

+0.792%

Real Estate

8.10% expected return

5.0%

+0.405%

Hedge Funds

6.00% expected return

2.0%

+0.120%

Methodology

Expected Return: Weighted average of asset class returns, incorporating valuation reversion assumptions for equities and default rate adjustments for fixed income.

Volatility: Calculated using correlation matrix between asset classes to reflect portfolio diversification benefits.

Sharpe Ratio: Risk-adjusted return metric (Portfolio Return - Risk-Free Rate) / Volatility. Higher is better.