Annual and Average Returns for Stocks, Bonds, and T-Bills, 1950 to 2017

StocksLong-Term Treasury BondsT-bills1950 to 2017Average12.7%6.6%4.30%1950 to 1959Average20.90.02.001960 to 1969Average8.71.64.001970 to 1979Average7.55.76.301980 to 1989Average18.213.58.901990 to 1999Average19.09.54.902000 to 2009Average0.98.02.702010Annual Return15.19.40.012011Annual Return2.129.90.022012Annual Return16.03.60.022013Annual Return32.412.70.072014Annual Return13.725.10.052015Annual Return1.41.20.212016Annual Return12.01.20.512017Annual Return21.88.41.392010 to 2017Average14.38.00.29

You have a portfolio with an asset allocation of 58 percent stocks, 30 percent long-term Treasury bonds, and 12 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.)

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