Show work and calculations : Assume you are creating portfolios at the start of 2005 and then selling them at the end of 2010 (i.e. they will be held for six years). Calculate the arithmetic and geometric average returns for each of the following three portfolios. Assuming you started with $1,000 in each portfolio, what will the final value of each portfolio be? (Ignore any taxes.) A. 100% in large company stocks B. 100% in long term government bonds C. 60% in large company stocks & 40% in long term government bonds

Standard deviations \& distributions by asset class The 1933 small-company stocks total return was 142.9 percent. Source: Modified from Stocks, Bonds, Bills, and Inflation: 2014 Yearbook'T, annually updates work by Roger G. Ibbotson and Rex A. Sinquefield (Chicago: Morningstar). All rights reserved