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Annual and Average Returns for Stocks, Bonds, and T-Bills, 1950 to 2017 Stocks Long-Term Treasury Bonds T-bills 1950 to 2017 Average 12.7 % 6.6 %

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

Stocks Long-Term Treasury Bonds T-bills
1950 to 2017 Average 12.7 % 6.6 % 4.30 %
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
2016 Annual Return 12.0 1.2 0.51
2017 Annual Return 21.8 8.4 1.39
2010 to 2017 Average 14.3 8.0 0.29

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 for each year.

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