Is 5% the right return target for institutional investors?

For many institutional investors, a 5% return has become the standard investment objective.1 Historically, a traditional 60/40 stock/bond portfolio would seem to have easily reached this target on a nominal basis (gross of inflation), with a return of 8.3%, and even on a real basis (net of inflation), with a return of 5.0%.2 Yet since ................
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