Q6.1 Look at the record of annual share returns in Table 6.1 (page 176), particularly the return performance during the 1980s, 1990s and 2000–2010.

a. How would you compare the returns during the 1980s with those produced in the 1990s? Is there anything that stands out about this market? How does it compare with the market that existed from early 2000 through 2010?

b. Considering the average annual returns that have been generated over holding periods of five years or more, what rate of return do you feel is typical for the sharemarket in general? Is it unreasonable to expect this kind of return, on average, in the future?

Explain.