Look back to Figure 1.1 and find the value of $1 invested in each asset class over this 96-year period. Calculate the geometric return for small-company stocks, large-company stocks, long-term government bonds, Treasury bills, and inflation.

Figure 1.1

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Value of a $1 investment FIGURE 1.1 100,000 10,000 1,000 100 10 .10 1926 1936 A $1 Investment in Different Types of Portfolios: 1926-2021 (Year-end 1925 = $1) 1946 1956 Small-company stocks Long-term government bonds 1966 1976 Year-end 1986 Large-company stocks Inflation 1996 Treasury bills $56,033.70 $14,086.37 $177.06 $21.73 $15.58 2006 2016 2021