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Annual and Average Returns for Stocks, Bonds, and T-Bills, 1950 to 2015. Long-Term Treasury Bonds 6.68 0.0 1.6 5.7 13.5 9.5 8.0 1950 to 2015

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Annual and Average Returns for Stocks, Bonds, and T-Bills, 1950 to 2015. Long-Term Treasury Bonds 6.68 0.0 1.6 5.7 13.5 9.5 8.0 1950 to 2015 1950 to 1959 1960 to 1969 1970 to 1979 1980 to 1989 1990 to 1999 2000 to 2009 2010 2011 2012 2013 2014 2015 2010 to 2015 Stocks 12.68 20.9 8.7 7.5 18.2 19.0 0.9 15.1 2.1 16.0 32.4 13.7 1.4 13.4 Average Average Average Average Average Average Average Annual Return Annual Return Annual Return Annual Return Annual Return Annual Return Average T-bills 4.408 2.00 4.00 6.30 8.90 4.90 2.70 0.01 0.02 0.02 0.07 0.05 0.21 0.06 29.9 3.6 -12.7 25.1 -1.2 9.0 You have a portfolio with an asset allocation of 40 percent stocks, 36 percent long-term Treasury bonds, and 24 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. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Portfolio Return % 2010 2011 2012 % % % 2013 2014 % 2015 Average % Standard deviation %

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