Glossary term
Classroom book
Definition
The impersonal $100,000 model every student sees. Illustrative weights, not your account and not a target allocation.
How it works
The classroom book is a fixed, made-up portfolio of $100,000 that every student sees. It has eight lines: four equity trackers (32%, 12%, 10% and 8%), one long-rates holding at 14%, two real-asset holdings (8% and 6%), and 10% in cash. Those weights sum to 100%, and they group into four sleeves: equity 62%, rates 14%, real assets 14%, cash 10%.
Nothing about the book depends on the reader. It stores no brokerage holdings and does no per-person sizing, so the same lesson can point at the same number and be right for everyone. The weights are illustrative teaching props chosen to show concentration, overlap and a cash line. They are not a target allocation and not a list of recommended holdings.
Worked example
Because the book is shared, any arithmetic done on it is the same for every reader. A 32% line is 0.32 × $100,000 = $32,000. The equity sleeve is 32% + 12% + 10% + 8% = 62%, or $62,000.
Suppose, hypothetically, the whole equity sleeve fell 10% while every other line stayed flat. The book would lose 0.62 × 10% = 6.2%, which is $6,200 on $100,000. That single sentence teaches concentration without referring to anyone's account.
Hypothetical, for education only. Not a recommendation and not a prediction.
Common mistake
The common mistake is to read the book as a model you are meant to copy, or to scale it down to your own balance and treat the weights as a target. It is a specimen on a lab bench. Studying why 62% sits in one sleeve is useful; adopting 62% is a decision about your own money that this publication cannot make, and that the weights were never built to support.