Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Annual and Average Returns for Stocks, Bonds, and T - Bills, 1 9 5 0 to 2 0 1 9 Stocks Long - Term Treasury

Annual and Average Returns for Stocks, Bonds, and T-Bills, 1950 to 2019
Stocks Long-Term Treasury Bonds T-bills
1950 to 2019 Average 12.7%6.6%4.2%
1950 to 1959 Average 20.90.02.0
1960 to 1969 Average 8.71.64.0
1970 to 1979 Average 7.55.76.3
1980 to 1989 Average 18.213.58.9
1990 to 1999 Average 19.09.54.9
2000 to 2009 Average 0.98.02.7
2010 Annual Return 15.19.40.01
2011 Annual Return 2.129.90.02
2012 Annual Return 16.03.60.02
2013 Annual Return 32.412.70.07
2014 Annual Return 13.725.10.05
2015 Annual Return 1.41.20.21
2016 Annual Return 12.01.20.51
2017 Annual Return 21.88.41.39
2018 Annual Return -4.4-1.81.94
2019 Annual Return 31.514.82.06
2010 to 2019 Average 14.27.70.63
You have a portfolio with an asset allocation of 45 percent stocks, 30 percent long-term Treasury bonds, and 25 percent T-bills. Use these weights and the returns given in the above table to compute the return of the portfolio in the year 2010 and each year since. Then compute the average annual return and standard deviation of the portfolio.
Note: Do not round intermediate calculations. Round your answers to 2 decimal places.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Options Futures And Other Derivatives

Authors: John C. Hull

9th Edition

0133456315, 9780133456318

More Books

Students also viewed these Finance questions

Question

7. What are the main provisions of the FMLA?pg 87

Answered: 1 week ago

Question

7. What are the main provisions of the FMLA?

Answered: 1 week ago