Historical returns Calculate the arithmetic average return of U.S. Treasury bills, long-term government bonds, and large-company stocks for 1989 to 1998. Whic had the highest return? Which had the lowest return? On the left side, click on the Spreadsheet Learning Aid to see Table 8.1-Year-by-Year Returns, 1950-1999. What is the average retun of U.S. Treasury bills for 1989 to 19987 % (Round to two decimal places.)

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
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**Educational Resource: Calculating Historical Returns**

**Objective:**
Calculate the arithmetic average return of U.S. Treasury bills, long-term government bonds, and large-company stocks for the period from 1989 to 1998. Determine which of these had the highest return and which had the lowest.

**Instructions:**

1. **Data Reference:**
   - Access the Spreadsheet Learning Aid and refer to Table 8.1 for Year-by-Year Returns from 1950 to 1999.
   
2. **Focus Question:**
   - What is the average return of U.S. Treasury bills for 1989 to 1998?

3. **Answer Format:**
   - Enter your answer as a percentage.
   - Please round your answer to two decimal places.

4. **Submission:**
   - Input your response in the provided answer box.
   - Click "Check Answer" to verify.

**Graphical/Diagram Instructions:**
- There are no graphs or diagrams included. If applicable, access additional resources in the Spreadsheet Learning Aid for visual data representation.

*Note: This educational task aims to enhance your understanding of financial return calculations over a specified period using historical financial data.*
Transcribed Image Text:**Educational Resource: Calculating Historical Returns** **Objective:** Calculate the arithmetic average return of U.S. Treasury bills, long-term government bonds, and large-company stocks for the period from 1989 to 1998. Determine which of these had the highest return and which had the lowest. **Instructions:** 1. **Data Reference:** - Access the Spreadsheet Learning Aid and refer to Table 8.1 for Year-by-Year Returns from 1950 to 1999. 2. **Focus Question:** - What is the average return of U.S. Treasury bills for 1989 to 1998? 3. **Answer Format:** - Enter your answer as a percentage. - Please round your answer to two decimal places. 4. **Submission:** - Input your response in the provided answer box. - Click "Check Answer" to verify. **Graphical/Diagram Instructions:** - There are no graphs or diagrams included. If applicable, access additional resources in the Spreadsheet Learning Aid for visual data representation. *Note: This educational task aims to enhance your understanding of financial return calculations over a specified period using historical financial data.*
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