Question: Historical average returns for Large Company Common Stocks, Long Term Government Bonds, and US Treasury Bills for the period 10-year period of 1999 through 2008

  1. Historical average returns for Large Company Common Stocks, Long Term Government Bonds, and US Treasury Bills for the period 10-year period of 1999 through 2008 are shown in the following table.  Use these data to solve the next several problems.

    Year

    Large Common Stock

    Long Term Government Bonds

    US Treasury Bills

    1999

    0.2104

    -0.0751

    0.0480

    2000

    -0.0910

    0.1722

    0.0598

    2001

    -0.1189

    0.0551

    0.0333

    2002

    -0.2210

    0.1515

    0.0161

    2003

    0.2889

    0.0201

    0.0094

    2004

    0.1088

    0.0812

    0.0114

    2005

    0.0491

    0.0689

    0.0279

    2006

    0.1579

    0.0028

    0.0497

    2007

    0.0549

    0.1085

    0.0452

    2008

    -0.3700

    0.1424

    0.0124

    Calculate the average return for Large Company Common Stocks for the 10-year period.

  1. Calculate the average return for Long Term Corporate Bonds for the 10-year period.

  1. Calculate the average return for US T-bills for the 10-year period.

  1. Calculate the holding period return for Large Company Common Stocks for the 10-year period.

  1. Calculate the holding period return for Long Term Corporate Bonds for the 10-year period.

  1. Calculate the holding period return for US T-bills for the 10-year period.

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