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Annual and Average Returns for Stocks, Bonds, and T-Bills, 1950 to 2015 0.0 7.5 1950 to 2015 Average 1950 to 1959 Average 1960 to 1969

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Annual and Average Returns for Stocks, Bonds, and T-Bills, 1950 to 2015 0.0 7.5 1950 to 2015 Average 1950 to 1959 Average 1960 to 1969 Average 1970 to 1979 Average 1980 to 1989 Average 1990 to 1999 Average 2000 to 2009 Average 2010 Annual Return 2011 Annual Return 2012 Annual Return 2013 Annual Return 2014 Annual Return 2015 Annual Return 2010 to 2015 Average Long-Term Treasury Stocks Bonds 12.6% 6.6% 20.9 8.7 1.6 5.7 18.2 13.5 19. 9.5 0.9 8.0 15.1 9.4 2.1 29.9 3.6 32.4 -12.7 13.7 1.4 -1.2 13.4 9.0 T-bills 4.40% 2.00 4.00 6.30 8.90 4.98 2.70 0.01 0.02 0.02 0.07 9.95 0.21 0.06 16. 25.1 You have a portfolio with an asset allocation of 50 percent stocks. 40 percent long-term Treasury bonds, and 10 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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