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Annual Returns for Stocks, Bonds, and T-Bills 2000 to 2009 Stocks (S&P 500) Bonds 20.1% 4.6 17.2 5.9% 3.5 2000 Annual return 2001 Annual return

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Annual Returns for Stocks, Bonds, and T-Bills 2000 to 2009 Stocks (S&P 500) Bonds 20.1% 4.6 17.2 5.9% 3.5 2000 Annual return 2001 Annual return 2002 Annual return 2003 Annual return 2004 Annual return 2005 Annual returr 2006 Annual return 2007 Annual returr 2008 Annual return 2009 Annual return 11.9 -22.1 28.7 10.9 4.9 15.8 3.5 -35.5 23.5 7.7 6.5 4.7 9.8 22.7 -12.2 0.2 You have a portfolio with an asset allocation of 29 percent stocks, 54 percent long-term Treasury bonds and 17 percent T-bills. Use these weights and the returns given in the above table to compute the return of the portfolio in the year 2000 and each year since. Then compute the average annual return and standard deviation of the portfolio. (Negative answers should be indicated with a minus sign. Do not round intermediate calculations. Round your final answer to 2 decimal places.) Portfolio Return 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Average Std dev

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