Look at the record of stock returns in Table 6 1
Look at the record of stock returns in Table 6.1 (page 211), particularly the return performance during the 1970s, 1980s, 1990s, and 2000 through 2010.
a. How would you compare the returns during the 1970s with those produced in the 1980s? How would you characterize market returns in the 1990s? Is there anything that stands out about this market? How does it compare with the market that existed from early 2000 through 2010?
b. Considering the average annual returns that have been generated over holding periods of 5 years or more, what rate of return do you feel is typical for the stock market in general? Is it unreasonable to expect this kind of return, on average, in the future? Explain.
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