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
Calculate the average return for Large Company Common Stocks for the 10-year period.
-
Calculate the average return for Long Term Corporate Bonds for the 10-year period.
-
Calculate the average return for US T-bills for the 10-year period.
-
Calculate the holding period return for Large Company Common Stocks for the 10-year period.
-
Calculate the holding period return for Long Term Corporate Bonds for the 10-year period.
-
Calculate the holding period return for US T-bills for the 10-year period.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Calculations 1 Average Return ...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started