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Determine the return on a portfolio that was equally invested in large-company stocks and long-term corporate bonds. What was the return on a portfolio that

image text in transcribed Determine the return on a portfolio that was equally invested in large-company stocks and long-term corporate bonds. What was the return on a portfolio that was equally invested in small stocks and Treasury bills?

TABLE 10.2 AVERAGE ANNUAL RETURNS: 1926-2020 \begin{tabular}{lc} \hline Investment & Average Return \\ \hline Large stocks & 12.2% \\ Small stocks & 16.2 \\ Long-term corporate bonds & 6.5 \\ Long-term government bonds & 6.1 \\ U.S. Treasury bills & 3.3 \\ Inflation & 2.9 \end{tabular} Source: 2021 SBBI Yearbook, Duff \& Phelps

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