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Using the data from Table 66, we can assess the relative accuracy of Equation 6-9 as follows:

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Using the data from Table  6‐6, we can assess the relative accuracy of Equation  6-9 as follows:

(1.096) (1.115)-(0.199) 1.201 1.244 -0.039 1.201 1.204

Table  6‐6

TABLE 6-6 Summary Statistics of Annual Returns for Major Financial Assets for 85 Years, January 1,

Equation  6-9

(1+G) = (1+AM) - 0 (6-9)

Transcribed Image Text:

(1.096) ≈ (1.115)² -(0.199)² 1.201≈ 1.244 -0.039 1.201≈ 1.204

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