Jestion rep P8-9 (similar to) Historical returns. Calculate the arithmetic average return of U.S. Treasury bills, long-term government bonds, and large company stocks for 1988 to 1997. Which had the highest return? Which had the lowest return? On the left side, click on the Spreadsheet Learning Aid to see Table 8.1-Year-by-Year Returns, 1950-1999 C D E Table 8.1 Year-by-Year Returns, 1950-1999 Long-Term Government Bonde Large Company Stocks Small Company Stocks Year 1950 Three Month U.S.Treasury Bills 1.20% 1.49% 1.66% 1.82% 0.85% 1.57% 2.46% 3.14% 1.54% 2.95% 2.66% 2.13% 2.72% 3.12% 3.54% 1951 1952 1953 1954 1955 1956 1957 1958 1959 1960 1961 1962 -0.96% -1.95% 1.93% 3.83% 4 BBS -1.34% -5.12% 9.46% -3.71% -3.55% 13.78% 0.19% 32.68% 23.47% 18.91% -1.74% 52.55% 31.44% 6.45% 43.78% 12.95% 0.19% 27 63% 8.79% 22.63% 16.67% 12.50% - 10.25% 24.11% 11.00% 48.45% 9.41% 6.36% -5.68% 65.13% 21 84% 3.82% -15.03% 70.63% 17.82% -5.16% 30.48% - 16.41% 12.20% 18.75% 37.67% -8.08% 103.39% 50.61% -32 27% -16.54% 18.44% 4.77% 4.24% 5.24% 6.59% 6.50% -0.49% 4.51% -0.27% 3.70% -7.41% -1.20% -6.52% 12 69% 17.47% 5.55% 1.40% 5.53% 8.50% 11.07% 0.90% 4,16% 1954 1965 1966 1967 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 4.10% 19.145 - 14.75% -26.40% 37 26% 23 98% 6.50% 18.77% 40.54% -29.74% 69.54% 54.81% 22.02% 22.29% 43.99% 35.34% 7.79% 27.44% 34.49% 22.09% 2237% 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 3.81% 6.91% 7.93% 5.80% 5.05% 5.10% 7.15% 10.45% 11.57% 14.95% 10.71% 8.85% 10.02% 7.89% 6.18% 5.50% 6.44% 8.32% 7.86% 5.65% 3.54% 2.97% 3.91% 5.58% 5.50% 5.32% 5.11% 13.17% 3.61% 6.52% -0.53% 15.29% 32 68% 23 96% -265% 8.40% 19.49% 7.13% 32.00% 18.40% 5.34% 16 85% 31.34 -3.20% 30.66% 7.71% 28.21% 3.40% - 13.95% 21.72% 8.37% - 27.08% 50.24% 27.84% 20.30% 5 7.79% 15.48% -7.18% 1994 1 -0.815 15 08% 33.21% 16.50% 3 1996 1997 1998 1999 50-year average Standard Deviation 37.71% 23.07% 33.17% 28.58 21.04% 14.09% 48095 5 5.226% -8.74% 5.936% 21.26% 17.103% 6 2.960% 16.695% Note: Sources for annual retums are the Center scarch on Security Prices, Standard & Poor's 500 index, Russell 2000 index, and Solomon-Smith my US Treasury Willide 51 52