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historical returns. Calculate the arithmetic average return of U.S. treasury bills, long-term government bonds, and large-company...

historical returns. Calculate the arithmetic average return of U.S. treasury bills, long-term government bonds, and large-company stocks for 1987 to 1996. which had the highest return? which had the lowest return?

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Answer #1

The details of the US treasury bills, long-term government bonds and large stocks are as shown in the table below:

Year T bill return Gov Long Bond return Large company stocks
1987 5.72% -4.96% 5.81%
1988 6.45% 8.22% 16.54%
1989 8.11% 17.69% 31.48%
1990 7.55% 6.24% -3.06%
1991 5.61% 15.00% 30.23%
1992 3.41% 9.36% 7.49%
1993 2.98% 14.21% 9.97%
1994 3.99% -8.04% 1.33%
1995 5.52% 23.48% 37.20%
1996 5.02% 1.43% 22.68%
Average Return 5.44% 8.26% 15.97%

The Large company stocks had the highest return (15.97%)

The US Treasury Bills had the lowest return (5.44%)

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