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 Average Average 1980 to 1989 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 % % % 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 Long-Term Treasury 6.6% 0.0 1.6 Bonds 5.7 13.5 You have a portfolio with an asset allocation of 50 percent stocks, 34 percent long-term Treasury bonds, and 16 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 Intermediate calculations. Round your answers to 2 decimal places. Portfolio Return 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

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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Question

Annual and Average Returns for Stocks, Bonds, and T-Bills, 1950 to 2019 You have a portfolio with an asset allocation of 50 percent stocks, 34 percent long-term Treasury bonds, and 16 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 devlation of the portfolio. Note: Do not round intermediate calculations. Round your answers to 2 decimal places.

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
Average
Average
Average
1990 to 1999
2000 to 2009 Average
2010 to 2019 Average
2010
2011
2012
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
2013
2014
2015
2016
2017
2018
2019
Average
Standard deviation
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
-4.4
31.5
14.2
Long-Term Treasury
Bonds
6.6%
0.0
1.6
5.7
13.5
9.5
8.0
9.4
29.9
You have a portfolio with an asset allocation of 50 percent stocks, 34 percent long-term Treasury bonds, and 16 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 intermediate calculations. Round your answers to 2 decimal places.
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

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