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Use the following table of returns from 1926 through 2017: Series Average return Large stocks 12.1 % Small stocks 16.5 Long-term corporate bonds 6.4 Long-term
Use the following table of returns from 1926 through 2017: |
Series | Average return | |
Large stocks | 12.1 | % |
Small stocks | 16.5 | |
Long-term corporate bonds | 6.4 | |
Long-term government bonds | 6.0 | |
U.S. Treasury bills | 3.4 | |
Inflation | 3.0 | |
a. | Determine the return on a portfolio that was equally invested in large-company stocks and long-term corporate bonds. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) |
b. | What was the return on a portfolio that was equally invested in small stocks and Treasury bills? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) |
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