Assume that one of your relatives, on your behalf, invested $100,000 in a trust holding S&P 500 stocks at the beginning of 1926. Using the data in Table 6‐6, determine the value of this trust at the end of 2010.

Table 6‐6

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TABLE 6-6 Summary Statistics of Annual Returns for Major Financial Assets for 85 Years, January 1, 1926-December 31, 2010 Returns summary S&P 500 Composite Aaa Corporate Bond US Treasury Bond Treasury bill Inflation Arithmetic Mean 11.5% 6.3 5.8 3.7 3.1 Std. Dev. 19.9% 8.5 9.2 3.0 4.2 Geometric Mean 9.6% 5.9 5.4 3.6 3.0