Question
Assume that one of your relatives, on your behalf, invested $100,000 in a trust holding S&P 500 stocks at the beginning of 1926. Using the
Assume that one of your relatives, on your behalf, invested $100,000 in a trust holding S&P 500 stocks at the beginning of 1926. Using the data in Table 6.6, determine the value of this trust at the end of 2018.
TABLE 6.6 Performance Statistics for Major Financial Assets, 1926-2018 Arithmetic Mean (%) Geometric Standard Minimum Maximum Asset Mean (%) Deviation (%) Value (%) Value (%) Large-Cap Stocks Small-Cap Stocks 10.0 11.9 19.8 -43.34 (1931) 53.99 (1933) 11.8 16.2 31.6 -58.01 (1937) 142.87 (1933) 6.3 -8.09 (1969) 42.56 (1982) Long-tern Corp Bonds 5.9 8.4 Long term Gov't Bonds 5.5 5.9 9.8 -14.90 (2009) 40.36 (1982) Inter-term Gew't 5.1 5.2 5.6 -5.14 (1994) 29.10 (1982) Bonds U.S. Treasury Bills 3.3 3.4 3.1 -0.02 (1938) 14.71 (1981) Inflation 2.9 3.0 4.0 -10.30 (1932) 18.16 (1946) Sourre: Duff & Phelpe, 2019 SBRI Vearbok Sucks Bunds, Belk and Inflation, Roger G. bbotson.
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Essentials Of Statistics For The Behavioral Sciences
Authors: Susan A. Nolan
3rd Edition
1464107777, 978-1464107771
