M & B 4th Edition by Dean Croushore

Exercise 2

If the government invested a portion of the Social Security trust fund in the stock market, would you expect people to change the way they invest their other savings? That is, suppose that someone currently has a portfolio with a $50,000 investment in the stock market and $25,000 in debt securities. Now suppose that their share of the Social Security trust fund is $30,000, and the government invests it all in the stock market. How might someone adjust his or her own portfolio in response?