Bookmark Chapter 6, Problem 8SP Problem Go to www.moneychimp.com. Select the link Volatility. Complete the retirement planning calculator, making the assumptions that you believe are appropriate for you. Then go to the Monte Carlo simulation calculator. Assume that you invest in large-company common stocks during your working years and then invest in long-term corporate bonds during retirement. Use the nominal average returns and standard deviations shown in Figure 6-2. What did you learn? FIGURE 6-2 Historical Rates of Return Nominal Real Average Annual Returns Standard Risk Premium Average Annual Returns Securities Devlation of Returns Lange company stocks Small 20.3 % 11.8% 87% 8.0% company stocks 16.5 % 32.5% 13.4 % 12.7% Corporate bonds 6.4 % 84 % 33% 2.6 % Intermediate-tem government bonds 5.5% 5.7 % 3.0% 2.3% US Treasury bills 3.8% 3.1% 0.7% 0.0% Infation 3.1% 42 % The al m equat he nominal ums le the nluton ate of 3.1 percent therk premium aqual the noninal curity etun le the erage rk troerate (Trery b of 3.3 pet Bookmark Chapter 6, Problem 8SP Problem Go to www.moneychimp.com. Select the link Volatility. Complete the retirement planning calculator, making the assumptions that you believe are appropriate for you. Then go to the Monte Carlo simulation calculator. Assume that you invest in large-company common stocks during your working years and then invest in long-term corporate bonds during retirement. Use the nominal average returns and standard deviations shown in Figure 6-2. What did you learn? FIGURE 6-2 Historical Rates of Return Nominal Real Average Annual Returns Standard Risk Premium Average Annual Returns Securities Devlation of Returns Lange company stocks Small 20.3 % 11.8% 87% 8.0% company stocks 16.5 % 32.5% 13.4 % 12.7% Corporate bonds 6.4 % 84 % 33% 2.6 % Intermediate-tem government bonds 5.5% 5.7 % 3.0% 2.3% US Treasury bills 3.8% 3.1% 0.7% 0.0% Infation 3.1% 42 % The al m equat he nominal ums le the nluton ate of 3.1 percent therk premium aqual the noninal curity etun le the erage rk troerate (Trery b of 3.3 pet