Problem 9-20 Risk versus Return in T-bills (LG9-2, LG9-4)

Table 9.2 Average Returns for Bonds

Low-risk bonds

1950 to 1959 Average 2.6 %

1960 to 1969 Average 4.7

1970 to 1979 Average 6.1

1980 to 1989 Average 8.3

1990 to 1999 Average 5.4

2000 to 2009 Average 2.3

Table 9.4 Annual Standard Deviation for T-Bills

Low-risk bonds

1950 to 1959 1.0 %

1960 to 1969 1.3

1970 to 1979 2.1

1980 to 1989 3.0

1990 to 1999 1.5

2000 to 2009 2.2

Calculate the coefficient of variation of the risk-return relationship (Use the above Tables) during each decade since 1950. (Round your answers to 2 decimal places.)

Decade CoV

1950s

1960s

1970s

1980s

1990s

2000s