3 | I5 LTN Best, worst, and average returns for various stock/bond allocations, 1997-2019 Portfolio allocation Stocks 0% 10% 20% 30% 40% 50% 60% 70% 80% Bonds 100% 90% 80% 70% 90% 100% 60% 50% 40% 30% 20% 10% 0% 50% 40% 35.1% 32.3% 30% 26.6% 29.4% 23.7% 20.9% 20% 18.0% 12.1% 12.3% 15.2% 11.2% 10% 5.0% 5.4% 5.8% 6.2% 6.7% 7.1% 7.5% 7.9% 8.3% 8.8% 9.2 0% -2.1% -1.4% 4.0% -10% 8.6% 13.1% -20% -17.7% -22.2% -30% -26.8% -31.3% 40% -35.9% 40.4 % -50% Best returns Worst returns -Average annual returns 1. What is the average annual return if someone invested 100% in bonds? 2. What is the average annual return if someone invested 100% in stocks?
3 | I5 LTN Best, worst, and average returns for various stock/bond allocations, 1997-2019 Portfolio allocation Stocks 0% 10% 20% 30% 40% 50% 60% 70% 80% Bonds 100% 90% 80% 70% 90% 100% 60% 50% 40% 30% 20% 10% 0% 50% 40% 35.1% 32.3% 30% 26.6% 29.4% 23.7% 20.9% 20% 18.0% 12.1% 12.3% 15.2% 11.2% 10% 5.0% 5.4% 5.8% 6.2% 6.7% 7.1% 7.5% 7.9% 8.3% 8.8% 9.2 0% -2.1% -1.4% 4.0% -10% 8.6% 13.1% -20% -17.7% -22.2% -30% -26.8% -31.3% 40% -35.9% 40.4 % -50% Best returns Worst returns -Average annual returns 1. What is the average annual return if someone invested 100% in bonds? 2. What is the average annual return if someone invested 100% in stocks?
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
Related questions
Question
Transcribed Image Text:ext
Arlal
B IUA
c3回回-|三,| 1三 |:三▼ m、EE
一
1.
1.5
Best, worst, and average returns for various stock/bond allocations, 1997-2019
Portfolio allocation
Stocks
Bonds
0%
100%
10%
90%
20%
30%
70%
40%
50%
60%
70%
80%
90%
100%
60%
50%
40%
30%
20%
10%
0%
50%
40%
35.1%
32.3%
30%
29.4%
26.6%
23.7%
20%
18.0%
20.9%
12.1%
12.3%
15.2%
11.2%
5.4%
10%
5.0%
5.8%
6.2%
6.7% 7.1%
7.5%
7.9% 8.3%
8.8% 9.29
-2.1%
4.0%
e10%
8.6%
13.1%
-20%
-17.7%
-22.2%
30%
-26.8%
-31.3%
-40%
-35.9%
-40.4%
-60%
Best returns
Worst returns
Average annual returns
2. What is the average annual return if someone
1. What is the average annual return if someone
invested 100% in bonds?
invested 100% in stocks?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Recommended textbooks for you
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education