The ending wealth value of $2,420 46 for common stocks in Figure 62 is the result of compounding at 9 6 percent for 85 years, or CWI WI 0 (1 096) 85 $1 00 (2,420 46) $2,420 46 Figure 62 10,000 1,000 100 10 Stock Corporate bonds 0 1 Treasury bonds Treasury bills CPI 1926 1930 1940 1950 1960 1970 198...

The question youve presented outlines a scenario where an initial wealth investment WI0 of 100 grows ...

The ending wealth value of $2,420.46 for common stocks in Figure 62 is the result of compounding

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The ending wealth value of $2,420.46 for common stocks in Figure 6‐2 is the result of compounding at 9.6 percent for 85 years, or

CWI = WI₀ (1.096)⁸⁵= $1.00 (2,420.46) = $2,420.46

Figure 6‐2

10,000 1,000 100 10 Stock - Corporate bonds 0.1 -Treasury bonds *Treasury bills --CPI | 1926 1930 1940 1950

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Investments Analysis And Management

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Authors: Charles P. Jones, Gerald R. Jensen

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The ending wealth value of $2,420.46 for common stocks in Figure 62 is the result of compounding

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10,000 1,000 100 10 Stock - Corporate bonds 0.1 -Treasury bonds *Treasury bills --CPI | 1926 1930 1940 1950 1960 1970 1980 1990 2000 $2,420 $131 $20 2010 $87 12

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