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Historical average returns for Large Company Common Stocks, Long Term Government Bonds, and US Treasury Bills for the period 10-year period of 1999 through 2008

Historical average returns for Large Company Common Stocks, Long Term Government Bonds, and US Treasury Bills for the period 10-year period of 1999 through 2008 are shown in the following table. Use these data to solve the next several problems.

Year

Large Common Stock

Long Term Government Bonds

US Treasury Bills

1999

0.2104

-0.0751

0.0480

2000

-0.0910

0.1722

0.0598

2001

-0.1189

0.0551

0.0333

2002

-0.2210

0.1515

0.0161

2003

0.2889

0.0201

0.0094

2004

0.1088

0.0812

0.0114

2005

0.0491

0.0689

0.0279

2006

0.1579

0.0028

0.0497

2007

0.0549

0.1085

0.0452

2008

-0.3700

0.1424

0.0124

1. Calculate the average return for Large Company Common Stocks for the 10-year period.

2. Calculate the average return for Long Term Corporate Bonds for the 10-year period.

3. Calculate the average return for US T-bills for the 10-year period.

4. Calculate the holding period return for Large Company Common Stocks for the 10-year period.

5. Calculate the holding period return for Long Term Corporate Bonds for the 10-year period.

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