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1. Calculate the expected return for each asset class on the Data tab by creating an index and showing the long-term compound rate 2. Why
1. Calculate the expected return for each asset class on the Data tab by creating an index and showing the long-term compound rate | ||||||||||
2. Why might long term compound returns be better than average annual returns | ||||||||||
Date | US Large Cap | US Mid Cap | US Small Cap | US Small Growth | International | Emerging Markets | 5-Year Gov Bonds | T-Bills |
1927 | 37.5% | 34.0% | 28.5% | 32.1% | 12.6% | 27.8% | 4.5% | 3.1% |
1928 | 43.6% | 40.1% | 31.8% | 41.6% | 9.1% | 1.1% | 0.9% | 3.6% |
1929 | -8.4% | -26.4% | -38.9% | -45.2% | -11.0% | -9.1% | 6.0% | 4.7% |
1930 | -24.9% | -36.3% | -39.3% | -37.1% | -22.9% | -9.0% | 6.7% | 2.4% |
1931 | -43.3% | -46.5% | -50.3% | -43.5% | -38.1% | -16.6% | -2.3% | 1.1% |
1932 | -8.2% | -6.5% | -3.6% | -8.8% | 4.0% | -3.9% | 8.8% | 1.0% |
1933 | 54.0% | 102.7% | 115.5% | 149.4% | 74.6% | 80.2% | 1.8% | 0.3% |
1934 | -1.4% | 10.8% | 21.6% | 38.1% | 7.2% | 22.7% | 9.0% | 0.2% |
1935 | 47.7% | 41.7% | 58.5% | 41.0% | 4.7% | 10.1% | 7.0% | 0.2% |
1936 | 33.9% | 35.5% | 53.2% | 32.5% | 10.5% | 16.7% | 3.1% | 0.2% |
1937 | -35.0% | -42.1% | -48.4% | -49.3% | -9.4% | -4.9% | 1.6% | 0.3% |
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