Portfolio analysis

Stacked bar chart comparison

Insights

• There are important differences between the 2 allocations, namely:
• Fixed income and cash are too large.
• Large Cap and International Equity are too small.
• Because the asset classes are arranged roughly according to riskiness, this recommendation is easily interpreted in terms of increased exposure.

Original graphic

Revisions and discussion

1. The pie chart has become a stacked bar chart (Excel stacked 'column' chart).
2. The entries are sorted in the Excel table most to least risky so that they appear in reverse order in the graphic
3. The data area is shown with a different background from the surrounding plot area.
4. One problem with pie charts is locating the 'zero' angle from which sectors are measured.
5. Because Other is insignificant its absence in the bars is clear.
6. Reasonable estimates of the actual percentages could be made from the revision.

2010/11/24