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Annual Returns for Stocks, Bonds, and T-Bills 2000 to 2009 Stocks (S&P 500) Bonds T-bills 2000 Annual return 9.1 % 20.1 % 5.9 % 2001
Annual Returns for Stocks, Bonds, and T-Bills 2000 to 2009 |
Stocks (S&P 500) | Bonds | T-bills | ||||||||
2000 | Annual return | 9.1 | % | 20.1 | % | 5.9 | % | |||
2001 | Annual return | 11.9 | 4.6 | 3.5 | ||||||
2002 | Annual return | 22.1 | 17.2 | 1.6 | ||||||
2003 | Annual return | 28.7 | 2.1 | 1.0 | ||||||
2004 | Annual return | 10.9 | 7.7 | 1.4 | ||||||
2005 | Annual return | 4.9 | 6.5 | 3.1 | ||||||
2006 | Annual return | 15.8 | 1.9 | 4.7 | ||||||
2007 | Annual return | 3.5 | 9.8 | 4.4 | ||||||
2008 | Annual return | 35.5 | 22.7 | 1.5 | ||||||
2009 | Annual return | 23.5 | 12.2 | 0.2 | ||||||
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You have a portfolio with an asset allocation of 33 percent stocks, 52 percent long-term Treasury bonds, and 15 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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