1 1 bok ences Annual and Average Returns for Stocks, Bonds, and T-Bills, 1950 to 2017 1960 to 1969 Average Average Average Average Average 1970 to 1979 1980 to 1989 Average Average 1990 to 1999 2000 to 2009 2010 Annual Return 2011 Annual Return 2012 Annual Return 2013 Annual Return 2014 Annual Return 2015 2016 2017 2010 to 2017 Annual Return Annual Return Annual Return Average 1950 to 2017 1950 to 1959 2010 2011 2012 2013 2014 2015 2016 2017 Average Standard deviation Portfolio Return % % % % % % % % % Stocks 12.7% 20.9 8.7 7.5 18.2 19.0 % 0.9 15.1 2.1 16.0 32.4 13.7 1.4 12.0 21.8 14.3 Long-Term Treasury Bonds You have a portfolio with an asset allocation of 54 percent stocks, 40 percent long-term Treasury bonds, and 6 percent T-bills. Use these weights and the returns given in the above table to compute the return of the portfolio in the year 2010 and each year since. Then compute the average annual return and standard deviation of the portfolio. (Do not round intermediate calculations. Round your answers to 2 decimal places.) 6.6% 0.0 1.6 5.7 13.5 9.5 8.0 9.4 29.9 3.6 -12.7 25.1 -1.2 1.2 8.4 8.0 T-bills 4.30% 2.00 4.00 6.30 8.90 4.90 2.70 0.01 0.02 0.02 0.07 0.05 0.21 0.51 1.39 0.29
1 1 bok ences Annual and Average Returns for Stocks, Bonds, and T-Bills, 1950 to 2017 1960 to 1969 Average Average Average Average Average 1970 to 1979 1980 to 1989 Average Average 1990 to 1999 2000 to 2009 2010 Annual Return 2011 Annual Return 2012 Annual Return 2013 Annual Return 2014 Annual Return 2015 2016 2017 2010 to 2017 Annual Return Annual Return Annual Return Average 1950 to 2017 1950 to 1959 2010 2011 2012 2013 2014 2015 2016 2017 Average Standard deviation Portfolio Return % % % % % % % % % Stocks 12.7% 20.9 8.7 7.5 18.2 19.0 % 0.9 15.1 2.1 16.0 32.4 13.7 1.4 12.0 21.8 14.3 Long-Term Treasury Bonds You have a portfolio with an asset allocation of 54 percent stocks, 40 percent long-term Treasury bonds, and 6 percent T-bills. Use these weights and the returns given in the above table to compute the return of the portfolio in the year 2010 and each year since. Then compute the average annual return and standard deviation of the portfolio. (Do not round intermediate calculations. Round your answers to 2 decimal places.) 6.6% 0.0 1.6 5.7 13.5 9.5 8.0 9.4 29.9 3.6 -12.7 25.1 -1.2 1.2 8.4 8.0 T-bills 4.30% 2.00 4.00 6.30 8.90 4.90 2.70 0.01 0.02 0.02 0.07 0.05 0.21 0.51 1.39 0.29
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:1
1
bok
ences
Annual and Average Returns for Stocks, Bonds, and T-Bills, 1950 to 2017
1960 to 1969
Average
Average
Average
Average
Average
1970 to 1979
1980 to 1989
Average
Average
1990 to 1999
2000 to 2009
2010 Annual Return
2011 Annual Return
2012 Annual Return
2013 Annual Return
2014 Annual Return
2015
2016
2017
2010 to 2017
Annual Return
Annual Return
Annual Return
Average
1950 to 2017
1950 to 1959
2010
2011
2012
2013
2014
2015
2016
2017
Average
Standard deviation
Portfolio Return
%
%
%
%
%
%
%
%
%
Stocks
12.7%
20.9
8.7
7.5
18.2
19.0
%
0.9
15.1
2.1
16.0
32.4
13.7
1.4
12.0
21.8
14.3
Long-Term Treasury
Bonds
You have a portfolio with an asset allocation of 54 percent stocks, 40 percent long-term Treasury bonds, and 6 percent T-bills. Use
these weights and the returns given in the above table to compute the return of the portfolio in the year 2010 and each year since.
Then compute the average annual return and standard deviation of the portfolio. (Do not round intermediate calculations. Round
your answers to 2 decimal places.)
6.6%
0.0
1.6
5.7
13.5
9.5
8.0
9.4
29.9
3.6
-12.7
25.1
-1.2
1.2
8.4
8.0
T-bills
4.30%
2.00
4.00
6.30
8.90
4.90
2.70
0.01
0.02
0.02
0.07
0.05
0.21
0.51
1.39
0.29
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