Annual and Average Returns for Stocks, Bonds, and T-Bills, 1950 to 2019 1950 to 2019 Average 1958 to 1959 Average 1960 to 1969 Average 1970 to 1979 Average 1988 to 1989 Average 1990 to 1999 Average 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 2018 Annual Return 2019 Annual Return 2010 to 2019 Average Stocks 12.7% 20.9 8.7 7.5 18.2 2010 2011 2012 2013 2014 2015 Portfolio Return % % % % % 19.0 0.9 0/ 15.1 2.1 16.0 32.4 13.7 1.4 12.0 21.8 -4.4 31.5 14.2 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 -1.8 14.8 7.7 T-bills 4.2% 2.0 4.0 6.3 You have a portfolio with an asset allocation of 45 percent stocks, 30 percent long-term Treas these weights and the returns given in the above table to compute the return of the portfolio ir Then compute the average annual return and standard deviation of the portfolio. Note: Do not round intermediate calculations. Round your answers to 2 decimal places. 8.9 4.9 2.7 0.01 0.02 0.02 0.07 0.05 0.21 0.51 1.39 1.94 2.06 0.63

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 2019
1950 to 2019 Average
1950 to 1959 Average
1960 to 1969 Average
1970 to 1979
1980 to 1989
1990 to 1999
2000 to 2009
Average
Average
2010 Annual Return
2011 Annual Return.
2012 Annual Return
2013 Annual Return
Annual Return
2014
2015
Annual Return
916
Annual Return
2017 Annual Return.
2018 Annual Return
2019 Annual Return
2010 to 2019 Average
Average
Average
2010
2011
2012
2013
2014
2015
Portfolio Return
Stocks
12.7%
20.9
8.7
7.5
18.2
19.0
0.9
%
%
%
%
%
15.1
2.1
04
16.0
32.4
13.7
1.4
12.0
21.8
-4.4
31.5
14.2
Long-Term Treasury
Bonds
6.6%
0.0
1.6
5.7
13.5
9.5
You have a portfolio with an asset allocation of 45 percent stocks, 30 percent long-term Treasury bonds, and 25 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.
Note: Do not round intermediate calculations. Round your answers to 2 decimal places.
8.0
9.4
29.9
3.6
-12.7
25.1
-1.2
1.2
8.4
-1.8
14.8
7.7
T-bills
4.2%
2.0
4.0
6.3
8.9
4.9
2.7
0.01
0.02
0.02
0.07
0.05
0.21
0.51
1.39
1.94
2.06
0.63
Transcribed Image Text:Annual and Average Returns for Stocks, Bonds, and T-Bills, 1950 to 2019 1950 to 2019 Average 1950 to 1959 Average 1960 to 1969 Average 1970 to 1979 1980 to 1989 1990 to 1999 2000 to 2009 Average Average 2010 Annual Return 2011 Annual Return. 2012 Annual Return 2013 Annual Return Annual Return 2014 2015 Annual Return 916 Annual Return 2017 Annual Return. 2018 Annual Return 2019 Annual Return 2010 to 2019 Average Average Average 2010 2011 2012 2013 2014 2015 Portfolio Return Stocks 12.7% 20.9 8.7 7.5 18.2 19.0 0.9 % % % % % 15.1 2.1 04 16.0 32.4 13.7 1.4 12.0 21.8 -4.4 31.5 14.2 Long-Term Treasury Bonds 6.6% 0.0 1.6 5.7 13.5 9.5 You have a portfolio with an asset allocation of 45 percent stocks, 30 percent long-term Treasury bonds, and 25 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. Note: Do not round intermediate calculations. Round your answers to 2 decimal places. 8.0 9.4 29.9 3.6 -12.7 25.1 -1.2 1.2 8.4 -1.8 14.8 7.7 T-bills 4.2% 2.0 4.0 6.3 8.9 4.9 2.7 0.01 0.02 0.02 0.07 0.05 0.21 0.51 1.39 1.94 2.06 0.63
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