7 percent (the Dow-Jones Industrials dropped 47 percent in the same span of time). Miss Tomlinson concludes that the best results are produced by the constant-ratio formula "when stock prices fluctuate over a fairly wide range but there is no extreme in either direction." Before beginning a constant-ratio plan, there are two decisions the investor must make. First, there is the problem of what ratio to adopt. In the examples referred to so far, a 50-50 ratio has been used, and in fact the plan is sometimes called the "equalizing" formula, because the stock and bond portions are "equalized" periodically.


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