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Yuan Kuei Huang

Negócios Economia e finanças

Risk and Return Lessons from Market History

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Historical Returns, 1926-2004 Source: © Stocks, Bonds, Bills, and Inflation 2006 Yearbook™ , Ibbotson Associates, Inc., Chicago (annually updates work by Roger G. Ibbotson and Rex A. Sinquefield). All rights reserved. Average Standard Series Annual Return Deviation 　　 Risk Premi um 　 Large Company Stocks 12.3% 20.2% 8.5% Small Company Stocks 17.4 32.9 13.6% Long-Term Corporate Bonds 6.2 8.5 2.4% Long-Term Government Bonds 5.8 9.2 2.0% U.S. Treasury Bills 3.8 3.1 Inflation 3.1 4.3

The Risk-Return Tradeoff

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Chap009

1. Risk and Return Lessons from Market History

2.

3. Historical Returns, 1926-2004 Source: © Stocks, Bonds, Bills, and Inflation 2006 Yearbook™ , Ibbotson Associates, Inc., Chicago (annually updates work by Roger G. Ibbotson and Rex A. Sinquefield). All rights reserved. Average Standard Series Annual Return Deviation 　　 Risk Premi um 　 Large Company Stocks 12.3% 20.2% 8.5% Small Company Stocks 17.4 32.9 13.6% Long-Term Corporate Bonds 6.2 8.5 2.4% Long-Term Government Bonds 5.8 9.2 2.0% U.S. Treasury Bills 3.8 3.1 Inflation 3.1 4.3

4. The Risk-Return Tradeoff