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Use the following table: Series Average return Large stocks 12.00 % Small stocks 16.70 Long-term corporate bonds 6.35 Long-term government bonds 6.10 U.S. Treasury bills
Use the following table:
Series | Average return | ||
Large stocks | 12.00 | % | |
Small stocks | 16.70 | ||
Long-term corporate bonds | 6.35 | ||
Long-term government bonds | 6.10 | ||
U.S. Treasury bills | 3.95 | ||
Inflation | 3.10 | ||
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.) Portfolio Return % 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.) Portfolio Return %
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