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Annual and Average Returns for Stocks, Bonds, and T-Bills, 1950 to 2015. Stocks Long-Term Treasury Bonds T-bills 1950 to 2015 Average 12.6 % 6.6 %
Annual and Average Returns for Stocks, Bonds, and T-Bills, 1950 to 2015.
Stocks | Long-Term Treasury Bonds | T-bills | |||||||||
1950 to 2015 | Average | 12.6 | % | 6.6 | % | 4.40 | % | ||||
1950 to 1959 | Average | 20.9 | 0.0 | 2.00 | |||||||
1960 to 1969 | Average | 8.7 | 1.6 | 4.00 | |||||||
1970 to 1979 | Average | 7.5 | 5.7 | 6.30 | |||||||
1980 to 1989 | Average | 18.2 | 13.5 | 8.90 | |||||||
1990 to 1999 | Average | 19.0 | 9.5 | 4.90 | |||||||
2000 to 2009 | Average | 0.9 | 8.0 | 2.70 | |||||||
2010 | Annual Return | 15.1 | 9.4 | 0.01 | |||||||
2011 | Annual Return | 2.1 | 29.9 | 0.02 | |||||||
2012 | Annual Return | 16.0 | 3.6 | 0.02 | |||||||
2013 | Annual Return | 32.4 | 12.7 | 0.07 | |||||||
2014 | Annual Return | 13.7 | 25.1 | 0.05 | |||||||
2015 | Annual Return | 1.4 | 1.2 | 0.21 | |||||||
2010 to 2015 | Average | 13.4 | 9.0 | 0.06 | |||||||
You have a portfolio with an asset allocation of 52 percent stocks, 40 percent long-term Treasury bonds, and 8 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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