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1950 to 2017 1950 to 1959 1960 to 1969 1970 to 1979 1980 to 1989 1990 to 1999 2000 to 2009 Average 2010 Annual Return 2011 Annual Return 2012 Annual Return 2013 Annual Return 2014 Annual Return 2015 Annual Return. 2016 Annual Return. 2017 Annual Return. 2010 to 2017 Average Average Average Average Average Average Average 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 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 You have a portfolio with an asset allocation of 50 percent stocks 38 percent long term

1950 to 2017 1950 to 1959 1960 to 1969 1970 to 1979 1980 to 1989 1990 to 1999 2000 to 2009 Average 2010 Annual Return 2011 Annual Return 2012 Annual Return 2013 Annual Return 2014 Annual Return 2015 Annual Return. 2016 Annual Return. 2017 Annual Return. 2010 to 2017 Average Average Average Average Average Average Average 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 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 You have a portfolio with an asset allocation of 50 percent stocks 38 percent long term

Essentials Of Investments
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
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Annual and Average Returns for Stocks, Bonds, and T-Bills, 1950 to 2017 Long-Term Treasury 1950 to 2017 1950 to 1959 1960 to 1969 1970 to 1979 1980 to 1989 1990 to 1999 2000 2000 to 2009 Aven Annual Return Annual Return Annual Return Annust Annual Return Annual Return 2015 Annual Return. 2016 Annual Return. 2017 Annual Return. 2010 to 2017 Average 2010 2011 2012 2013 2014 2015 2016 2017 Average 2010 2010 C 2011 2011 Average Average Average Average Average Averas Average Average 2012 A 2012 2013 2013 2014 Standard deviation Portfolio Return % % % % % % % % % Stocks 12.7% 20.9 8.7 7.5 18.2 10.2 % 19.0 19.0 0.9 19:3 15.1 *** 2.1 2²2 16.0 50% 32.4 13.7 1.4 You have a portfolio with an asset allocation of 50 percent stocks, 38 percent long-term Treasury bonds, and 12 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.) 12.0 21.8 14.3 Bonds 6.6% 0.0 1.6 5.7 13.5 9.5 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
Transcribed Image Text:Annual and Average Returns for Stocks, Bonds, and T-Bills, 1950 to 2017 Long-Term Treasury 1950 to 2017 1950 to 1959 1960 to 1969 1970 to 1979 1980 to 1989 1990 to 1999 2000 2000 to 2009 Aven Annual Return Annual Return Annual Return Annust Annual Return Annual Return 2015 Annual Return. 2016 Annual Return. 2017 Annual Return. 2010 to 2017 Average 2010 2011 2012 2013 2014 2015 2016 2017 Average 2010 2010 C 2011 2011 Average Average Average Average Average Averas Average Average 2012 A 2012 2013 2013 2014 Standard deviation Portfolio Return % % % % % % % % % Stocks 12.7% 20.9 8.7 7.5 18.2 10.2 % 19.0 19.0 0.9 19:3 15.1 *** 2.1 2²2 16.0 50% 32.4 13.7 1.4 You have a portfolio with an asset allocation of 50 percent stocks, 38 percent long-term Treasury bonds, and 12 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.) 12.0 21.8 14.3 Bonds 6.6% 0.0 1.6 5.7 13.5 9.5 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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