Series |
Average return |
Standard Deviation |
Large-company stocks |
10.9 |
% |
21.2 |
% |
Small-company stocks |
16.4 |
|
33.0 |
|
Long-term corporate bonds |
6.2 |
|
8.4 |
|
Long-term government bonds |
6.1 |
|
9.4 |
|
Intermediate-term government bonds |
5.6 |
|
5.7 |
|
U.S. Treasury bills |
3.8 |
|
3.1 |
|
Inflation |
3.1 |
|
4.2 |
|
|
What range of returns would you expect to see 68 percent of the time for large-company stocks?
Expected range of returns
What about 95 percent of the time?
Expected range of returns