Question: Use the following table: Series Average return Large stocks 11.70 % Small stocks 16.40 Long-term corporate bonds 6.20 Long-term government bonds 6.10 U.S. Treasury bills

Use the following table:

Series

Average return

Large stocks 11.70 %
Small stocks 16.40
Long-term corporate bonds 6.20
Long-term government bonds 6.10
U.S. Treasury bills 3.80
Inflation 3.10

a.

Determine the return on a portfolio that was equally invested in large-company stocks and long-term corporate bonds. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

b. What was the return on a portfolio that was equally invested in small stocks and Treasury bills? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

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