Question: Problem 9-27 Asset Allocation (LG9-2, LG9-5) Annual and Average Returns for Stocks, Bonds, and T-Bills, 1950 to 2017 You have a portfolio with an asset


Problem 9-27 Asset Allocation (LG9-2, LG9-5) Annual and Average Returns for Stocks, Bonds, and T-Bills, 1950 to 2017 You have a portfolio with an asset allocation of 50 percent stocks, 32 percent long-term Treasury bonds, and 18 percent T-bills. Use these weights and the returns given in the above table to compute the return of the portfolio in the year 2010 and each year since. Then compute the average annual return and standard deviation of the portfolio. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Problem 9-19 Risk versus Return in Bonds (LG9-2, LG9-4) Table 9.2 Average Returns for Bonds Table 9.4 Annual Standard Deviation for Bonds Use the tables above to calculate the coefficient of variation of the risk-return relationship of the bond market during each decade since 1950. (Round your answers to 2 decimal places.)
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