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Question 12.S-TP.1: Recent Return History Use Table 12.1 to calculate the averag...

Recent Return History Use Table 12.1 to calculate the average return over the years 1996 through 2000 for large-company stocks, long-term government bonds, and Treasury bills.

Table 12.1

Year Large-
Company
Stocks		 Long-Term
Government
Bonds		 U.S.
Treasury
Bills		 Consumer
Price
Index		 Year Large-
Company
Stocks		 Long-Term U.S.
Treasury
Bills		 Consumer
Price
Index
1926 13.75% 5.69% 3.30% -1.12% 1969 -8.43 -5.63 6.90 6.20
1927 35.70 6.58 3.15 -2.26 1970 3.94 18.92 6.50 5.57
1928 45.08 1.15 4.05 -1.16 1971 14.30 11.24 4.36 3.27
1929 -8.80 4.39 4.47 .58 1972 18.99 2.39 4.23 3.41
1930 -25.13 4.47 2.27 -6.40 1973 -14.69 3.30 7.29 8.71
1931 -43.60 -2.15 1.15 -9.32 1974 -26.47 4.00 7.99 12.34
1932 -8.75 8.51 .88 -10.27 1975 37.23 5.52 5.87 6.94
1933 52.95 1.92 .52 .76 1976 23.93 15.56 5.07 4.86
1934 -2.31 7.59 .27 1.52 1977 -7.16 .38 5.45 6.70
1935 46.79 4.20 .17 2.99 1978 6.57 -1.26 7.64 9.02
1936 32.49 5.13 .17 1.45 1979 18.61 1.26 10.56 13.29
1937 -35.45 1.44 .27 2.86 1980 32.50 -2.48 12.10 12.52
1938 31.63 4.21 .06 -2.78 1981 -4.92 4.04 14.60 8.92
1939 -1.43 3.84 .04 .00 1982 21.55 44.28 10.94 3.83
1940 -10.36 5.70 .04 .71 1983 22.56 1.29 8.99 3.79
1941 -12.02 .47 .14 9.93 1984 6.27 15.29 9.90 3.95
1942 20.75 1.80 .34 9.03 1985 31.73 32.27 7.71 3.80
1943 25.38 2.01 .38 2.96 1986 18.67 22.39 6.09 1.10
1944 19.49 2.27 .38 2.30 1987 5.25 -3.03 5.88 4.43
1945 36.21 5.29 .38 2.25 1988 16.61 6.84 6.94 4.42
1946 -8.42 .54 .38 18.13 1989 31.69 18.54 8.44 4.65
1947 5.05 -1.02 .62 8.84 1990 -3.10 7.74 7.69 6.11
1948 4.99 2.66 1.06 2.99 1991 30.46 19.36 5.43 3.06
1949 17.81 4.58 1.12 -2.07 1992 7.62 7.34 3.48 2.90
1950 30.05 -.98 1.22 5.93 1993 10.08 13.06 3.03 2.75
1951 23.79 -.20 1.56 6.00 1994 1.32 -7.32 4.39 2.67
1952 18.39 2.43 1.75 .75 1995 37.58 25.94 5.61 2.54
1953 -1.07 2.28 1.87 .75 1996 22.96 .13 5.14 3.32
1954 52.23 3.08 .93 -.74 1997 33.36 12.02 5.19 1.70
1955 31.62 -.73 1.80 .37 1998 28.58 14.45 4.86 1.61
1956 6.91 -1.72 2.66 2.99 1999 21.04 -7.51 4.80 2.68
1957 -10.50 6.82 3.28 2.90 2000 -9.10 17.22 5.98 3.39
1958 43.57 -1.72 1.71 1.76 2001 -11.89 5.51 3.33 1.55
1959 12.01 -2.02 3.48 1.73 2002 -22.10 15.15 1.61 2.38
1960 .47 11.21 2.81 1.36 2003 28.89 2.01 .94 1.88
1961 26.84 2.20 2.40 .67 2004 10.88 8.12 1.14 3.26
1962 -8.75 5.72 2.82 1.33 2005 4.91 6.89 2.79 3.42
1963 22.70 1.79 3.23 1.64 2006 15.79 .28 4.97 2.54
1964 16.43 3.71 3.62 .97 2007 5.49 10.85 4.52 4.08
1965 12.38 .93 4.06 1.92 2008 -37.00 41.78 1.24 .09
1966 -10.06 5.12 4.94 3.46 2009 26.46 -25.61 .15 2.72
1967 23.98 -2.86 4.39 3.04 2010 15.06 7.73 .14 1.50
1968 11.03 2.25 5.49 4.72
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