Annual and Average Returns for Stocks, Bonds, and T-Bills, 1950 to 20171950 to 2017 Average1950 to 1959 Average1960 to 1969AverageAverage1970 to 1979Average1980 to 19891990 to 1999Average2000 to 2009AverageAnnual Return20102011 Annual Return2012 Annual Return2013 Annual Return2014 Annual Return2015 Annual Return2016 Annual Return2017Annual Return2010 to 2017 Average2010Portfolio ReturnStocks12.7%20.98.77.5%18.219.00.915.12.116.032.413.71.412.021.814.3Long-Term TreasuryBonds6.6%0.01.65.713.59.58.09.429.93.6You have a portfolio with an asset allocation of 47 percent stocks, 30 percent long-term Treasury bonds, and 23percent T-bills. Use these weights and the returns given in the above table to compute the return of the portfolio inthe year 2010 and each year since. Then compute the average annual return and standard deviation of the portfolio.(Do not round intermediate calculations. Round your answers to 2 decimal places.)-12.725.1-1.21.28.48.0T-bills4.30%2.004.006.308.904.902.700.010.020.020.070.050.210.511.390.29

Standard deviation of a portfolio is a measure of its risk or volatility and it quantifies how much…

Answered: Annual and Average Returns for Stocks,…

Fundamentals Of Financial Management, Concise Edition (mindtap Course List)

10th Edition

ISBN:9781337902571

Author:Eugene F. Brigham, Joel F. Houston

Publisher:Eugene F. Brigham, Joel F. Houston

Chapter8: Risk And Rates Of Return

Section: Chapter Questions

Problem 22SP

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Annual and Average Returns for Stocks, Bonds, and T-Bills, 1950 to 2017 Long-Term Treasury 1950 to 2019 Average 1950 to 1959 Average Average 1968 to 1969 1970 to 1979 Average 1988 to 1989 Average 1990 to 1999 Average 2000 to 2009 Average 2010 Annual Return 2011 Annual Return 2012 Annual Return 2013 Annual Return 2014 Annual Return 2015 Annual Return 2016 Annual Return 2017 Annual Return 2018 Annual Return 2019 Annual Return 2010 to 2019 Average 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Average Standard deviation Portfolio Return %6 %6 %6 % %6 % %6 % %6 % Stocks 12.7% 20.9 8.7 7.5 18.2 19.0 0.9 15.1 % 2.1 16.0 32.4 13.7 1.4 12.0 21.8 -4.4 31.5 14.2 Bonds You have a portfolio with an asset allocation of 50 percent stocks, 32 percent long-term Treasury bonds, and 18 percent T-bills. Use these weights and the returns given in the above table to compute the return of the portfolio in the year 2010 and each year since. Then compute the average annual return and standard deviation of…
Annual and Average Returns for Stocks, Bonds, and T-Bills, 1950 to 2017 1950 to 2017 Average 1950 to 1959 Average Average Average Average Average Average: Annual Return 2010 2011 Annual Return 2012 Annual Return 2013 Annual Return 2014 Annual Return 2015 Annual Return. 2016 Annual Return. 2017 Annual Return 2010 to 2017 Average 1960 to 1969 1970 to 1979 1980 to 1989 1990 to 1999 2000 to 2009 12.7% 20.9 8.7 7.5 18.2 19.0 0.9 15.1 2.1 16.0 32.4 13.7 1.4 12.0 21.8 14.3 Stocks Long-Term Treasury Bonds 6.6% 0.0 1.6 5.7 13.5 9.5 8.0 9.4 29.9 3.6 -12.7 25.1 -1.2 1.2 8.4 8.0 4.30% 2.00 4.00 6.30 8.90 4.90 2,70 0.01 0.02 0.02 0.07 0.05 0.21 0.51 1.39 0.29 T-bills You have a portfolio with an asset allocation of 60 percent stocks, 30 percent long-term Treasury bonds, and 10 percent T-bills. Use these weights and the returns given in the above table to compute the return of the portfolio in the year 2010 and each year since. Then compute the average annual return and standard deviation of the…
es Annual and Average Returns for Stocks, Bonds, and T-Bills, 1950 to 2017 1950 to 2017 Average 1950 to 1959 1960 to 1969 1970 to 1979 Average Average Average Average 1980 to 1989 1990 to 1999 Average Average 2000 to 2009 Annual Return Annual Return 2010 2011 2012 Annual Return 2013 Annual Return 2014 Annual Return 2015 Annual Return 2016 Annual Return 2017 Annual Return 2010 to 2017 Average Stocks 12.7% 20.9 8.7 7.5 18.2 19.0 0.9 15.1 2.1 16.0 32.4 13.7 1.4 12.0 21.8 14.3 Long-Term Treasury Bonds 6.6% 0.0 1.6 5.7 13.5 9.5 8.0 9.4 29.9 3.6 -12.7 25.1 -1.2 1.2 8.4 8.0 T-bills 4.30% 2.00 4.00 6.30 8.90 4.90 2.70 0.01 0.02 0.02 0.07 0.05 0.21 0.51 1.39 0.29 You have a portfolio with an asset allocation of 50 percent stocks, 32 percent long-term Treasury bonds, and 18 percent T-bills. Use these weights and the returns given in the above table to compute the return of the portfolio in the year 2010 and each year since. Then compute the average annual return and standard deviation of the…
Annual and Average Returns for Stocks, Bonds, and T-Bills, 1950 to 2017 1950 to 2017 Average 1950 to 1959 1960 to 1969 1970 to 1979 Average Average Average 1980 to 1989 Average 1990 to 1999 Average 2000 to 2009 Average 2010 Annual Return 2011 Annual Return 2012 Annual Return 2013 Annual Return 2014 Annual Return 2015 Annual Return 2016 Annual Return 2017 Annual Return 2010 to 2017 Average Stocks 12.7% 20.9 8.7 7.5 18.2 19.0 0.9 15.1 2.1 16.0 32.4 13.7 1.4 12.0 21.8 14.3 Long-Term Treasury Bonds 6.6% 0.0 1.6 5.7 13.5 9.5 8.0 9.4 29.9 3.6 -12.7 25.1 -1.2 1.2 8.4 8.0 T-bills 4.30% 2.00 4.00 6.30 8.90 4.90 2.70 0.01 0.02 0.02 0.07 0.05 0.21 0.51 1.39 0.29 You have a portfolio with an asset allocation of 50 percent stocks, 32 percent long-term Treasury bonds, and 18 percent T-bills. Use these weights and the returns given in the above table to compute the return of the portfolio in the year 2010 and each year since. Then compute the average annual return and standard deviation of the…
Annual and Average Returns for Stocks, Bonds, and T-Bills, 1950 to 2019 Long-Term Stocks Treasury Bonds 12.7% 20.9 8.7 1950 to 2019 Average 1950 to 1959 Average 1960 to 1969 Average 1970 to 1979 Average 1988 to 1989 Average 1990 to 1999 Average 2000 to 2009 Average. 2010 Annual Return. 2011 Annual Return 2012 Annual Return 2013 Annual Return 2014 Annual Return. 2015 Annual Returni 2016 Annual Return. 2017 Annual Return. 2018 Annual Return. 2019 Annual Return 2010 to 2019 Average 7.5 18.2 19.0 0.9 15.1 2.1 16.0 32.4 13.7 1.4 12.0 21.8 -4.4 31.5 14.2 6.6% 0.0 1.6 5.7 13.5 9.5 8.0 9.4 29.9 3.6 -12.7 25.1 -1.2 1.2 8.4 -1.8 14.8 7.7 T-bills 4.2% 2.0 4.0 6.3 8.9 4.9 2.7 0.01 0.02 0.02 0.07 0.05 0.21 0.51 1.39 1.94 2.06 0.63 You have a portfolio with an asset allocation of 62 percent stocks, 30 percent long-term Treasury bonds, and 8 percent T-bills. Use these weights and the returns given in the above table to compute the return of the portfolio in the year 2010 and each year since. Then…
Annual and Average Returns for Stocks, Bonds, and T-Bills, 1950 to 2019 1950 to 2019 Average 1950 to 1959 Average 1960 to 1969 Average 1970 to 1979 1980 to 1989 1990 to 1999 2000 to 2009 Average Average 2010 Annual Return 2011 Annual Return. 2012 Annual Return 2013 Annual Return Annual Return 2014 2015 Annual Return 916 Annual Return 2017 Annual Return. 2018 Annual Return 2019 Annual Return 2010 to 2019 Average Average Average 2010 2011 2012 2013 2014 2015 Portfolio Return Stocks 12.7% 20.9 8.7 7.5 18.2 19.0 0.9 % % % % % 15.1 2.1 04 16.0 32.4 13.7 1.4 12.0 21.8 -4.4 31.5 14.2 Long-Term Treasury Bonds 6.6% 0.0 1.6 5.7 13.5 9.5 You have a portfolio with an asset allocation of 45 percent stocks, 30 percent long-term Treasury bonds, and 25 percent T-bills. Use these weights and the returns given in the above table to compute the return of the portfolio in the year 2010 and each year since. Then compute the average annual return and standard deviation of the portfolio. Note: Do not round…
Annual and Average Returns for Stocks, Bonds, and T-Bills, 1950 to 2019 Stocks Long - Term Treasury Bonds T-bills 1950 to 2019 Average 12.7% 6.6% 4.2% 1950 to 1959 Average20.9 0.0 2.0 1960 to 1969 Average 8.7 1.6 4.0 1970 to 1979 Average 7.5 5.7 6.3 1980 to 1989 Average18.2 13.5 8.9 1990 to 1999 Average 19.0 9.5 4.9 2000 to 2009 Average 0.9 8.0 2.7 2010 Annual Return15.1 9.4 0.01 2011 Annual Return 2.1 29.9 0.02 2012 Annual Return 16.0 3.6 0.02 2013 Annual Return32.4-12.7 0.07 2014 Annual Return 13.7 25.10.05 2015 Annual Return 1.4-1.2 0.21 2016 AnnualReturn 12.0 1.2 0.51 2017 Annual Return 21.8 8.4 1.39 2018 Annual Return -4.4 1.8 1.94 2019 Annual Return 31.5 14.8 2.06 2010 to 2019 Average 14.2 7.7 0.63 You have a portfolio with an asset allocation of 62 percent stocks, 30 percent long-term Treasury bonds, and 8 percent T-bills. Use these weights and the returns given in the above table to compute the return of the portfolio in the year 2010 and each year since. Then compute the…
Intro You've collected the following historical rates of return for stocks A and B: Year (t) FA,t FB,t 2016 0.02 0.01 2015 0.08 0.05 2014 0.17 0.07
Average Average Average Average Average Average Average 1950 to 2017 1950 to 1959 1960 to 1969 1970 to 1979 1980 to 1989 1990 to 1999 2000 to 2009 2010 Annual Return 2011 Annual Return 2012 Annual Return 2013 Annual Return 2014 Annual Return 2015 Annual Return 2016 Annual Return 2017 Annual Return 2010 to 2017 Average 2010 2011 2012 2013 2014 Portfolio Return % % % Stocks 12.7% 20.9 8.7 7.5 18.2 19.0 0.9 15.1 2.1 16.0 32.4 13.7 1.4 12.0 21.8 14.3 % Long-Term Treasury Bonds 6.6% 0.0 1.6 5.7 13.5 You have a portfolio with an asset allocation of 40 percent stocks, 36 percent long-term Treasury bonds, and 24 percent T-bills. Use these weights and the returns given in the above table to compute the return of the portfolio in the year 2010 and each year since. Then compute the average annual return and standard deviation of the portfolio. (Do not round intermediate calculations. Round your answers to 2 decimal places.) 9.5 8.0 9.4 29.9 3.6 -12.7 25.1 -1.2 1.2 8.4 8.0 T-bills 4.30% 2.00 4.00…
Annual and Average Returns for Stocks, Bonds, and T-Bills, 1950 to 2017 Stocks Long-Term Treasury Bonds T-bills 1950 to 2017 Average 12.7 % 6.6 % 4.30 % 1950 to 1959 Average 20.9 0.0 2.00 1960 to 1969 Average 8.7 1.6 4.00 1970 to 1979 Average 7.5 5.7 6.30 1980 to 1989 Average 18.2 13.5 8.90 1990 to 1999 Average 19.0 9.5 4.90 2000 to 2009 Average 0.9 8.0 2.70 2010 Annual Return 15.1 9.4 0.01 2011 Annual Return 2.1 29.9 0.02 2012 Annual Return 16.0 3.6 0.02 2013 Annual Return 32.4 −12.7 0.07 2014 Annual Return 13.7 25.1 0.05 2015 Annual Return 1.4 −1.2 0.21 2016 Annual Return 12.0 1.2 0.51 2017 Annual Return 21.8 8.4 1.39 2010 to 2017 Average 14.3 8.0 0.29 You have a portfolio with an asset allocation of 50 percent stocks, 38 percent long-term Treasury bonds, and 12 percent T-bills. Use these weights and the returns given in the…
Stocks C and F have the following historical returns:Year return (HPY) of C return (HPY) of F2016 −18.00% −14.50%2017 33.00% 21.80%2018 15.00 % 30.50%2019 −0.50% −7.60%2020 27.00% 26.30%Required i. Calculate the geometric rate of return for each stock during the 5-year period. ii. Calculate the standard deviation of returns for each stock. iii. Calculate the coefficient of variation for each stock. iv. If you are a risk-averse investor then, assuming these are your only choices, discusswhether you would prefer to hold Stock C or Stock F.
Year U.S. Gov’t T-Bills U.K. Common Stocks 2015 0.063 0.150 2016 0.081 0.043 2017 0.076 0.374 2018 0.090 0.192 2019 0.085 0.106 a. Compute the geometric mean rate of return for each of these investments and compare the arithmetic mean return and geometric mean return for each investment and discuss the difference between mean returns as related to the standard deviation of each series.

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