Question
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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