Use the data given in question 21 to construct a bar graph for 1985 through 1989.

 Question 21

In the course of researching the benefits of diversification, you collect the information given in the table on page 47 (top), which presents rates of return for different portfolios.

(a) Use a line chart to plot the 20-year return for all five portfolios.

(b) What information do these plots provide?

Table on page 47

Transcribed Image Text:

Year 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 Compound annual return Stocksa 4.01% 14.31 18.98 - 14.66 -26.47 37.20 23.84 -7.18 6.56 18.44 32.42 -4.91 21.41 22.51 6.27 32.16 18.47 5.23 16.81 31.49 11.55 Bondsb 12.10% 13.23 5.68 -1.11 4.35 9.19 16.75 -.67 -1.16 -1.22 -3.95 1.85 40.35 .68 15.43 30.97 24.44 -2.69 9.67 18.11 9.00 60% stocks 40 % bonds 7.52% 14.14 13.54 -9.11 -14.88 25.65 21.18 -4.57 3.65 10.28 17.45 - 1.99 28.98 13.43 10.11 31.85 21.11 3.59 13.97 26.24 10.89 stocks bonds cash 7.98 % 10.83 9.38 -3.03 -5.44 17.04 15.19 -0.94 4.40 9.14 13.17 4.06 23.97 10.52 10.75 23.38 16.61 3.92 11.01 19.22 9.78 BB&K Index 4.7 % 13.7 15.1 -2.2 -6.6 19.6 11.5 6.1 13.0 11.5 17.9 6.4 14.4 15.4 10.4 25.4 23.3 8.6 13.2 14.3 11.54