With these managed portfolios, the participants understand the expected rate of return and the range of returns.

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The more Chapter 9 filings, the less money Calpers receives, and the more strain on the fictional expected rate of return until the boiler bursts.

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In June of 2012, Calpers lowered the expected rate of return on its portfolio to 7.5% from 7.75%.

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The clothing outfitter's average expected rate of return over the next 10 years is 17.8%, according to Reese's Buffett strategy, another reason it gets strong interest from the Buffett model.

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Because the dividends on Laffer Shares would vary depending upon GDP growth rates, the markets would discount the expected cash flows at an equity rate of return, which is considerably higher than the interest rate on government bonds.

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Second, this rate of return is then matched to the expected returns of the asset classes to find the allocation in stocks, bonds, and cash that best fits the return requirement.

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And because they have zero expected return, they are inferior to the rate of risk-free return.

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Further, when averaging the strategy's two ways of estimating shareholders' expected rate of return, shareholders can expect to earn 17.8% annually on their investment, which is very strong.

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