5.
value:
10.00 points
Problem 11-21 Portfolio Returns [LO 1]
Use the following table:
Series
Large stocks
Small stocks
Long-term corporate bonds
Long-term government bonds
U.S. Treasury bills
Inflation
Average return
11.84%
16.54
6.27
6.10
3.87
3.10
a. Determine the return on a portfolio that was equally invested in large-company stocks and long-term corporate bonds. (Do
rounded to 2 decimal places, e.g., 32.16.)
Portfolio Return
%
b. What was the return on a portfolio that was equally invested in small stocks and Treasury bills? (Do not round intermediat
decimal places, e.g., 32.16.)
Portfolio Return
%