Given the data from the following table:

. What if the period from 1990 to 2014 had been "normal"?

a. Calculate the arithmetic average return on the S&P 500 from 1926 to 1989.

b. Replace the actual returns from 1990 to 2014 with the average return from

(a). How much would $100 invested in the S&P 500 at the end of 1925 have grown to by the end of 2014?

(Hint: Use the actual returns from 1926 to 1989 and then continue the growth at the assumed rate.)

c. Do the same for small stocks.

a. Calculate the arithmetic average return on the S&P 500 from 1926 to 1989.

The arithmetic average return of the S&P 500 from 1926 to 1989 is ______ %.

(Round to two decimal places.)b. Replace the actual returns from 1990 to 2014 with the average return from (a).

How much would $100 invested in the S&P 500 at the end of 1925 have grown to by the end of 2014?

(Hint:

Use the actual returns from 1926 to 1989 and then continue the growth at the assumed rate.)$100 invested in the S&P 500 at the end of 1925 would have grown to

______________ .(Round to the nearest dollar.)

c. Do the same for small stocks. The arithmetic average return of the small stocks from 1926 to 1989 is

___________ %. (Round to two decimal places.)$100 invested in the small stocks at the end of 1925 would have grown to

____________.(Round to the nearest dollar.)

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