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Annual and Average Returns for Stocks, Bonds, and T-Bills, 1950 to 2017 1950 to 2019 Average 1950 to 1959 Average 1960 to 1969 1970 to 1979 1980 to 1989 Average Average 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 19.0 0.9 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 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 You have a portfolio with an asset allocation of 50 percent stocks, 26 percent long-term Treasury bonds, and 24 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.

Annual and Average Returns for Stocks, Bonds, and T-Bills, 1950 to 2017 1950 to 2019 Average 1950 to 1959 Average 1960 to 1969 1970 to 1979 1980 to 1989 Average Average 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 19.0 0.9 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 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 You have a portfolio with an asset allocation of 50 percent stocks, 26 percent long-term Treasury bonds, and 24 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.

Corporate Fin Focused Approach
Corporate Fin Focused Approach
5th Edition
ISBN:9781285660516
Author:EHRHARDT
Publisher:EHRHARDT
Chapter7: Valuation Of Stocks And Corporations
Section: Chapter Questions
Problem 23SP
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Connect Only Problem 9-11 Asset Allocation (LG9-2, LG9-5) Annual and Average Returns for Stocks, Bonds, and T-Bills, 1950 to 2017 1950 to 2019 Average 1950 to 1959 Average Average 1960 to 1969 1970 to 1979 1980 to 1989 1990 to 1999 2000 to 2009 Average Average Average 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 19.0 0.9 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 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 You have a portfolio with an asset allocation of 50 percent stocks, 26 percent long-term Treasury bonds, and 24 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.
Transcribed Image Text:Connect Only Problem 9-11 Asset Allocation (LG9-2, LG9-5) Annual and Average Returns for Stocks, Bonds, and T-Bills, 1950 to 2017 1950 to 2019 Average 1950 to 1959 Average Average 1960 to 1969 1970 to 1979 1980 to 1989 1990 to 1999 2000 to 2009 Average Average Average 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 19.0 0.9 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 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 You have a portfolio with an asset allocation of 50 percent stocks, 26 percent long-term Treasury bonds, and 24 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.
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