Bonds versus stocks

Associate Professor of Finance at The Leavey School of Business and Administration at Santa Clara University in Santa Clara (CA95053).

Assistant Professor of Accounting at the same institution. The authors wish to thank Peter Bernstein, Evan Schulman, and Laurence Siege1 for helpful comments on an earlier draft. We retain full responsibility for all errors. Meir Statman acknowledges support of a Batterymarch Fellowship.