Use the following table:
| Series |
Average return |
| Large stocks |
|
11.72 |
% |
| Small stocks |
|
16.42 |
|
| Long-term corporate bonds |
|
6.21 |
|
| Long-term government bonds |
|
6.10 |
|
| U.S. Treasury bills |
|
3.81 |
|
| Inflation |
|
3.10 |
|
|
a. Determine the return on a portfolio that was equally invested in large-company stocks and long-term corporate bonds.
Portfolio Return___________%
b. What was the return on a portfolio that was equally invested in small stocks and Treasury bills?
Portfolio Return___________%