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 Average Average Stocks 12.7% Bonds T-bills 6.6% 4.30% 20.9 0.0 2.00 Average 8.7 1.6 4.00 Average 7.5 5.7 6.30 Average 18.2 13.5 8.90 Average 19.0 9.5 4.90 2000 to 2009 Average 0.9 8.0 2.70 2010 Annual Return 15.1 9.4 0.01 2011 Annual Return 2.1 29.9 0.02 2012 Annual Return 16.0 3.6 0.02 2013 Annual Return 32.4 -12.7 0.07 2014 Annual Return 13.7 25.1 0.05 2015 Annual Return 1.4 -1.2 0.21 2016 2017 2010 to 2017 Annual Return 12.0 1.2 0.51 Annual Return Average 21.8 8.4 1.39 14.3 8.0 0.29 You have a portfolio with an asset allocation of 58 percent stocks, 30 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 portfollo in the year 2010 and each year since. Then compute the average annual return and standard deviation of the portfollo. (Do not round Intermediate calculations. Round your answers to 2 decimal places.) Answer is complete but not entirely correct. Portfolio Return 2010 11.6 % 2011 10.2 % 2012 10.4 % 2013 15.0 % 2014 15.5 % 2015 0.5 % 2016 7.4 % 2017 15.3 % Average 10.7 % Standard 6.31 % deviation
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 Average Average Stocks 12.7% Bonds T-bills 6.6% 4.30% 20.9 0.0 2.00 Average 8.7 1.6 4.00 Average 7.5 5.7 6.30 Average 18.2 13.5 8.90 Average 19.0 9.5 4.90 2000 to 2009 Average 0.9 8.0 2.70 2010 Annual Return 15.1 9.4 0.01 2011 Annual Return 2.1 29.9 0.02 2012 Annual Return 16.0 3.6 0.02 2013 Annual Return 32.4 -12.7 0.07 2014 Annual Return 13.7 25.1 0.05 2015 Annual Return 1.4 -1.2 0.21 2016 2017 2010 to 2017 Annual Return 12.0 1.2 0.51 Annual Return Average 21.8 8.4 1.39 14.3 8.0 0.29 You have a portfolio with an asset allocation of 58 percent stocks, 30 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 portfollo in the year 2010 and each year since. Then compute the average annual return and standard deviation of the portfollo. (Do not round Intermediate calculations. Round your answers to 2 decimal places.) Answer is complete but not entirely correct. Portfolio Return 2010 11.6 % 2011 10.2 % 2012 10.4 % 2013 15.0 % 2014 15.5 % 2015 0.5 % 2016 7.4 % 2017 15.3 % Average 10.7 % Standard 6.31 % deviation
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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Raghubhai
Transcribed Image Text:Annual and Average Returns for Stocks, Bonds, and T-Bills, 1950 to 2017
Long-Term Treasury
Stocks
Bonds
T-bills
1950 to 2017
1950 to 1959
1960 to 1969
1970 to 1979
1980 to 1989
1990 to 1999
Average
Average
12.7%
6.6%
4.30%
20.9
0.0
2.00
Average
8.7
1.6
4.00
Average
7.5
5.7
6.30
Average
18.2
13.5
8.90
Average
19.0
9.5
4.90
2000 to 2009
2010 Annual Return
2011 Annual Return
2012 Annual Return
2013 Annual Return
2014 Annual Return
2015 Annual Return
2016
2017
2010 to 2017
Average
0.9
8.0
2.70
15.1
9.4
0.01
2.1
29.9
0.02
16.0
3.6
0.02
32.4
-12.7
0.07
13.7
25.1
0.05
1.4
-1.2
0.21
Annual Return
Annual Return
Average
12.0
1.2
0.51
21.8
8.4
1.39
14.3
8.0
0.29
You have a portfolio with an asset allocation of 58 percent stocks, 30 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.)
Answer is complete but not entirely correct.
Portfolio Return
2010
11.6
%
2011
10.2
%
2012
10.4
%
2013
15.0
%
2014
15.5
%
2015
0.5
%
2016
7.4
%
2017
15.3
%
Average
10.7
%
Standard
6.31
%
deviation
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