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a.Calculate the arithmetic average return on the S&P 500 from 1926 to 1989 b.Replace the actual returns from 1990 to 2014 with the average return

a.Calculate the arithmetic average return on the S&P 500 from 1926 to 1989 b.Replace the actual returns from 1990 to 2014 with the average return from (a). How much would $100 invested in the S&P 500 at the end of 1925 have grown to by the end of 2014? (Hint: Use the actual returns from 1926 to 1989 and then continue the growth at the assumed rate.) $100 invested in the S&P 500 at the end of 1925 would have grown to $.? C. Do the same for small stocks The arithmetic average return of the small stocks from 1926 to 1989 is what percent? $100 invested in the small stocks at the end of 1925 would have grown to $.?

Yearly returns from 1926-2014 for the S&P 500, small stocks, corporate bonds, world portfolio, Treasury bills, and inflation (as measured by the CPI)

Year S&P 500 Small Stocks Corp Bonds World Portfolio Treasury Bills CPI

1926 0.11138 -0.072 0.06285 0.228 0.03194 -0.01188

1927 0.37126 0.25754 0.0655 0.25326 0.03125 -0.02163

1928 0.43308 0.46872 0.03377 0.33463 0.03824 -0.01229

1929 -0.08907 -0.50467 0.04321 -0.07692 0.04737 0.00746

1930 -0.25257 -0.45583 0.06343 -0.22574 0.02347 -0.0642

1931 -0.43858 -0.50216 -0.0238 -0.39305 0.01023 -0.09235

1932 -0.08861 0.08696 0.12198 0.0303 0.00806 -0.10465

1933 0.52895 1.872 0.05255 0.66449 0.00293 0.00974

1934 -0.02341 0.25209 0.09728 0.02552 0.00155 0.01286

1935 0.47208 0.64739 0.0686 0.22782 0.00165 0.03175

1936 0.32801 0.87508 0.0622 0.19283 0.00175 0.01231

1937 -0.35258 -0.53403 0.02546 -0.1695 0.00319 0.0304

1938 0.33199 0.26275 0.04357 0.05614 0.00041 -0.0295

1939 -0.0091 0.00184 0.04247 -0.01441 0.00008 0

1940 -0.10082 -0.1234 0.04512 0.03528 -0.00058 0.00912

1941 -0.11767 -0.13728 0.01788 0.18744 0.00042 0.0994

1942 0.21076 0.52504 0.03119 0.01189 0.00262 0.09041

1943 0.25758 1 0.03365 0.19895 0.0034 0.02764

1944 0.19694 0.60408 0.03101 -0.1024 0.00321 0.02445

1945 0.36461 0.82665 0.03512 0.11032 0.00321 0.02148

1946 -0.0818 -0.12608 0.02558 -0.15124 0.00352 0.18224

1947 0.0524 -0.02658 0.0045 0.03196 0.00461 0.08893

1948 0.05099 -0.06609 0.03707 -0.0573 0.00979 0.02904

1949 0.18065 0.21502 0.04327 0.05421 0.01106 -0.02116

1950 0.30579 0.45908 0.01891 0.25477 0.01213 0.05946

1951 0.24553 0.09767 -0.0021 0.22446 0.01483 0.06122

1952 0.18501 0.06472 0.03427 0.15822 0.01642 0.00641

1953 -0.01099 -0.05985 0.02061 0.04838 0.0178 0.00796

1954 0.52404 0.65232 0.04658 0.49823 0.00863 -0.0079

1955 0.31429 0.2211 0.01075 0.24739 0.01555 0.00478

1956 0.06627 0.03459 -0.01792 0.06581 0.02422 0.02853

1957 -0.10853 -0.15053 0.04469 -0.06017 0.03129 0.02928

1958 0.43344 0.70923 0.00849 0.34456 0.01415 0.01796

1959 0.11904 0.1868 0.00157 0.23303 0.02815 0.01765

1960 0.00483 -0.05004 0.06722 0.03492 0.02582 0.01301

1961 0.26811 0.30836 0.03681 0.20778 0.02159 0.00713

1962 -0.08784 -0.1295 0.06204 -0.06212 0.02724 0.01275

1963 0.22691 0.18093 0.03167 0.15381 0.03151 0.01678

1964 0.16358 0.19405 0.03988 0.11247 0.03518 0.00963

1965 0.12356 0.36365 0.02082 0.09832 0.03962 0.01907

1966 -0.10105 -0.07302 -0.00255 -0.10116 0.04705 0.03476

1967 0.23942 0.77916 -0.01162 0.21283 0.04147 0.03101

1968 0.11002 0.47611 0.22457 0.13941 0.05294 0.04637

1969 -0.08466 -0.32219 -0.02459 -0.03858 0.06591 0.06228

1970 0.03986 -0.04503 0.11179 -0.01984 0.06383 0.05524

1971 0.14325 0.16347 0.09682 0.19567 0.04317 0.03312

1972 0.18936 0.04222 0.08323 0.23547 0.03891 0.03413

1973 -0.14791 -0.35936 0.02987 -0.14506 0.07059 0.087

1974 -0.26539 -0.27327 0.00233 -0.2448 0.08078 0.12328

1975 0.3725 0.82769 0.11039 0.34493 0.05821 0.06962

1976 0.23675 0.57116 0.14557 0.14712 0.05156 0.04824

1977 -0.07388 0.19915 0.0551 0.02002 0.05152 0.0672

1978 0.0644 0.2042 0.01833 0.18216 0.07308 0.09035

1979 0.18353 0.39698 -0.01558 0.12671 0.1069 0.13308

1980 0.32266 0.29141 -0.04976 0.27721 0.11523 0.12521

1981 -0.05053 0.14617 0.08977 -0.03305 0.14856 0.08912

1982 0.21483 0.3225 0.34898 0.11272 0.10664 0.03797

1983 0.225 0.48048 0.07317 0.2328 0.08847 0.03833

1984 0.06152 -0.02495 0.17103 0.05773 0.09956 0.03943

1985 0.31648 0.29125 0.29486 0.4177 0.07677 0.03793

1986 0.18603 0.05908 0.20913 0.42799 0.06057 0.01089

1987 0.05171 -0.09204 -0.01578 0.16764 0.05384 0.04423

1988 0.16608 0.20288 0.13793 0.2395 0.06323 0.0442

1989 0.31686 0.01488 0.1531 0.17194 0.08221 0.04656

1990 -0.03104 -0.36325 0.08606 -0.16517 0.0768 0.061

1991 0.30466 0.41799 0.15869 0.18966 0.05507 0.03081

1992 0.07619 0.22075 0.10642 -0.0466 0.03401 0.02897

1993 0.10079 0.13792 0.14662 0.23129 0.02899 0.02755

1994 0.0132 -0.01096 -0.02435 0.05584 0.0388 0.02652

1995 0.37578 0.20056 0.21991 0.21318 0.05532 0.02555

1996 0.2296 0.21511 0.04239 0.13993 0.05145 0.03322

1997 0.33363 0.3208 0.10847 0.16227 0.05082 0.01688

1998 0.28579 -0.11975 0.10908 0.24795 0.04781 0.01607

1999 0.21042 -0.0126 -0.03037 0.25354 0.04561 0.02697

2000 -0.09104 -0.0249 0.11694 -0.12928 0.05756 0.03384

2001 -0.11886 0.32781 0.11461 -0.16521 0.03779 0.01563

2002 -0.22101 -0.05624 0.11181 -0.19541 0.01634 0.02357

2003 0.28685 0.69151 0.09229 0.33761 0.01018 0.0188

2004 0.10882 0.31392 0.0651 0.15247 0.012 0.03275

2005 0.04911 0.03988 0.07734 0.10023 0.02963 0.03417

2006 0.15795 0.26379 0.04167 0.20652 0.04786 0.02526

2007 0.05494 -0.111 0.04742 0.09566 0.04675 0.04086

2008 -0.36998 -0.45864 0.13449 -0.40334 0.01474 0.00101

2009 0.26464 1.12127 0.00018 0.30793 0.00097 0.02709

2010 0.15064 0.3361 0.07972 0.12339 0.00122 0.01496

2011 0.02112 -0.07155 0.14703 -0.05017 0.00043 0.02967

2012 0.16003 0.21311 0.04513 0.16537 0.00057 0.01733

2013 0.32388 0.50814 -0.03067 0.27365 0.00028 0.01518

2014 0.13688 -0.04541 0.11658 0.05504 0.00016 0.00748

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a.Calculate the arithmetic average return on the S&P 500 from 1926 to 1989 b.Replace the actual returns from 1990 to 2014 with the average return from (a). How much would $100 invested in the S&P 500 at the end of 1925 have grown to by the end of 2014? (Hint: Use the actual returns from 1926 to 1989 and then continue the growth at the assumed rate.) $100 invested in the S&P 500 at the end of 1925 would have grown to $.? C. Do the same for small stocks The arithmetic average return of the small stocks from 1926 to 1989 is what percent? $100 invested in the small stocks at the end of 1925 would have grown to $.? Yearly returns from 1926-2014 for the S&P 500, small stocks, corporate bonds, world portfolio, Treasury bills, and inflation (as measured by the CPI)
Year	S&P 500	Small Stocks	Corp Bonds	World Portfolio	Treasury Bills	CPI
1926	0.11138	-0.072	0.06285	0.228	0.03194	-0.01188
1927	0.37126	0.25754	0.0655	0.25326	0.03125	-0.02163
1928	0.43308	0.46872	0.03377	0.33463	0.03824	-0.01229
1929	-0.08907	-0.50467	0.04321	-0.07692	0.04737	0.00746
1930	-0.25257	-0.45583	0.06343	-0.22574	0.02347	-0.0642
1931	-0.43858	-0.50216	-0.0238	-0.39305	0.01023	-0.09235
1932	-0.08861	0.08696	0.12198	0.0303	0.00806	-0.10465
1933	0.52895	1.872	0.05255	0.66449	0.00293	0.00974
1934	-0.02341	0.25209	0.09728	0.02552	0.00155	0.01286
1935	0.47208	0.64739	0.0686	0.22782	0.00165	0.03175
1936	0.32801	0.87508	0.0622	0.19283	0.00175	0.01231
1937	-0.35258	-0.53403	0.02546	-0.1695	0.00319	0.0304
1938	0.33199	0.26275	0.04357	0.05614	0.00041	-0.0295
1939	-0.0091	0.00184	0.04247	-0.01441	0.00008	0
1940	-0.10082	-0.1234	0.04512	0.03528	-0.00058	0.00912
1941	-0.11767	-0.13728	0.01788	0.18744	0.00042	0.0994
1942	0.21076	0.52504	0.03119	0.01189	0.00262	0.09041
1943	0.25758	1	0.03365	0.19895	0.0034	0.02764
1944	0.19694	0.60408	0.03101	-0.1024	0.00321	0.02445
1945	0.36461	0.82665	0.03512	0.11032	0.00321	0.02148
1946	-0.0818	-0.12608	0.02558	-0.15124	0.00352	0.18224
1947	0.0524	-0.02658	0.0045	0.03196	0.00461	0.08893
1948	0.05099	-0.06609	0.03707	-0.0573	0.00979	0.02904
1949	0.18065	0.21502	0.04327	0.05421	0.01106	-0.02116
1950	0.30579	0.45908	0.01891	0.25477	0.01213	0.05946
1951	0.24553	0.09767	-0.0021	0.22446	0.01483	0.06122
1952	0.18501	0.06472	0.03427	0.15822	0.01642	0.00641
1953	-0.01099	-0.05985	0.02061	0.04838	0.0178	0.00796
1954	0.52404	0.65232	0.04658	0.49823	0.00863	-0.0079
1955	0.31429	0.2211	0.01075	0.24739	0.01555	0.00478
1956	0.06627	0.03459	-0.01792	0.06581	0.02422	0.02853
1957	-0.10853	-0.15053	0.04469	-0.06017	0.03129	0.02928
1958	0.43344	0.70923	0.00849	0.34456	0.01415	0.01796
1959	0.11904	0.1868	0.00157	0.23303	0.02815	0.01765
1960	0.00483	-0.05004	0.06722	0.03492	0.02582	0.01301
1961	0.26811	0.30836	0.03681	0.20778	0.02159	0.00713
1962	-0.08784	-0.1295	0.06204	-0.06212	0.02724	0.01275
1963	0.22691	0.18093	0.03167	0.15381	0.03151	0.01678
1964	0.16358	0.19405	0.03988	0.11247	0.03518	0.00963
1965	0.12356	0.36365	0.02082	0.09832	0.03962	0.01907
1966	-0.10105	-0.07302	-0.00255	-0.10116	0.04705	0.03476
1967	0.23942	0.77916	-0.01162	0.21283	0.04147	0.03101
1968	0.11002	0.47611	0.22457	0.13941	0.05294	0.04637
1969	-0.08466	-0.32219	-0.02459	-0.03858	0.06591	0.06228
1970	0.03986	-0.04503	0.11179	-0.01984	0.06383	0.05524
1971	0.14325	0.16347	0.09682	0.19567	0.04317	0.03312
1972	0.18936	0.04222	0.08323	0.23547	0.03891	0.03413
1973	-0.14791	-0.35936	0.02987	-0.14506	0.07059	0.087
1974	-0.26539	-0.27327	0.00233	-0.2448	0.08078	0.12328
1975	0.3725	0.82769	0.11039	0.34493	0.05821	0.06962
1976	0.23675	0.57116	0.14557	0.14712	0.05156	0.04824
1977	-0.07388	0.19915	0.0551	0.02002	0.05152	0.0672
1978	0.0644	0.2042	0.01833	0.18216	0.07308	0.09035
1979	0.18353	0.39698	-0.01558	0.12671	0.1069	0.13308
1980	0.32266	0.29141	-0.04976	0.27721	0.11523	0.12521
1981	-0.05053	0.14617	0.08977	-0.03305	0.14856	0.08912
1982	0.21483	0.3225	0.34898	0.11272	0.10664	0.03797
1983	0.225	0.48048	0.07317	0.2328	0.08847	0.03833
1984	0.06152	-0.02495	0.17103	0.05773	0.09956	0.03943
1985	0.31648	0.29125	0.29486	0.4177	0.07677	0.03793
1986	0.18603	0.05908	0.20913	0.42799	0.06057	0.01089
1987	0.05171	-0.09204	-0.01578	0.16764	0.05384	0.04423
1988	0.16608	0.20288	0.13793	0.2395	0.06323	0.0442
1989	0.31686	0.01488	0.1531	0.17194	0.08221	0.04656
1990	-0.03104	-0.36325	0.08606	-0.16517	0.0768	0.061
1991	0.30466	0.41799	0.15869	0.18966	0.05507	0.03081
1992	0.07619	0.22075	0.10642	-0.0466	0.03401	0.02897
1993	0.10079	0.13792	0.14662	0.23129	0.02899	0.02755
1994	0.0132	-0.01096	-0.02435	0.05584	0.0388	0.02652
1995	0.37578	0.20056	0.21991	0.21318	0.05532	0.02555
1996	0.2296	0.21511	0.04239	0.13993	0.05145	0.03322
1997	0.33363	0.3208	0.10847	0.16227	0.05082	0.01688
1998	0.28579	-0.11975	0.10908	0.24795	0.04781	0.01607
1999	0.21042	-0.0126	-0.03037	0.25354	0.04561	0.02697
2000	-0.09104	-0.0249	0.11694	-0.12928	0.05756	0.03384
2001	-0.11886	0.32781	0.11461	-0.16521	0.03779	0.01563
2002	-0.22101	-0.05624	0.11181	-0.19541	0.01634	0.02357
2003	0.28685	0.69151	0.09229	0.33761	0.01018	0.0188
2004	0.10882	0.31392	0.0651	0.15247	0.012	0.03275
2005	0.04911	0.03988	0.07734	0.10023	0.02963	0.03417
2006	0.15795	0.26379	0.04167	0.20652	0.04786	0.02526
2007	0.05494	-0.111	0.04742	0.09566	0.04675	0.04086
2008	-0.36998	-0.45864	0.13449	-0.40334	0.01474	0.00101
2009	0.26464	1.12127	0.00018	0.30793	0.00097	0.02709
2010	0.15064	0.3361	0.07972	0.12339	0.00122	0.01496
2011	0.02112	-0.07155	0.14703	-0.05017	0.00043	0.02967
2012	0.16003	0.21311	0.04513	0.16537	0.00057	0.01733
2013	0.32388	0.50814	-0.03067	0.27365	0.00028	0.01518
2014	0.13688	-0.04541	0.11658	0.05504	0.00016	0.00748