Answered step by step
Verified Expert Solution
Question
1 Approved Answer
This data was from Jeremy Siegels books, The Future for Investors and Stocks for the Long Run . Siegel tells us that, over the period
This data was from Jeremy Siegels books, The Future for Investors and Stocks for the Long Run. Siegel tells us that, over the period from 1802 2005, the long-run average real return in the US equity market is 6.8% and it is 3.5% in the bond market. Based on Siegels data, answer the following three questions.
If a relative invested $1,000 in the bond market in 1802 and allowed it to grow at 3.5% for the next 220 years, how much would the investment be worth in 2022?
a. $1,935,873
b. $28,886,128
c. $94,990,812
d. $5,978,662
Step by Step Solution
There are 3 Steps involved in it
Step: 1
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