This fictional case, set in the summer of 2020, focuses on an article in the Wall Street Journal that compares stock and bond returns and notes, to the surprise of many, that about a third of the time bonds prove to be better investments than stocks. This flies in the face of the usual notion that stocks should outperform bonds due to their higher risk. Data accompanying the case allows case users to calculate returns and variations in returns. The case is intended as an introduction to risk and return and is used in Darden’s pre-matriculation program.
