Look at below. A) How would you compare the average annual returns for the various decades? B) Considering the average annual returns that have been generated over holding periods of 10 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

Rate of return from dividends

1930s 5.7%

1940s 5.8%

1950s 4.7%

1960s 3.2%

1970s 4.2%

1980s 4.1%

1990s 2.4%

2000-2009 1.8%

1900-2014 3.9%

Rate of return from Capital Gains

1930s -1.4%

1940s 3.8%

1950s 16.2%

1960s 5.4%

1970s 3.3%

1980s 13.8%

1990s 16.5%

2000-2009 -0.7%

1900-2014 7.5%

Average Annual Total return

1930s 4.3%

1940s 9.6%

1950s 20.9%

1960s 8.6%

1970s 7.5%

1980s 17.9%

1990s 18.9%

2000-2009 1.1%

1900-2014 11.4%