It's a complete mystery (well not quite, but anyway) of what happens within annually sorted Fama-French portfolios. What does it really look like? How much are companies moving around?
read moreA paper by Claus Munk with the title "A Mean-Variance Benchmark for Household Portfolios over the Life Cycle" solves an interesting case of housing and stock market portfolio choice in a simple way.
If you want to play around with the parameters of the model to see different solutions to the problem check out this calculator: in browser housing and stock portfolio optimizer.