question 1- What is the average annual return if someone invested 100% in bonds?
The average annual return invested in bonds are
question 2-What is the average annual return if someone invested 100% in stocks?
The average annual return is
question 3-Calculate the range of potential annual returns if you invested 10% in bonds and 90% in stocks. How does this range compare with the range of annual returns if you invested 10% in stocks and 90% bonds?
question 4-What might you say to someone whose reason for investing in 90% bonds and 10% stocks are that they want a 6% return on investment?
question 5-Use evidence from this graph to explain the value of investing in both stocks and bonds - not just one or the other.
Answers
Answer:
One thing about stocks is that returns are never matched. On average in the long run 6-7% will be normal. There were as long as in the early 80s to the late 90s when the rate of return was estimated at 16-18%.
Explanation:
There is also a stretch that lasts for 3 years and sometimes longer when the return does not come.
Those numbers I quoted were based on the S&P 500. Sometimes an investor’s ability or fortune (sometimes luck is important) may allow for large or small returns.
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Answer:
The correct answer of this question is one thing about stocks is that they never equal their returns. In the long term, 6-7 percent will be considered typical. There was a period between the early 1980s and the late 1990s when the rate of return was projected to be 16-18%.
Explanation:
Given - The average annual return invested in bonds.
To Find - What is the average annual return if someone invested 100% in bonds?
One thing about stocks is that they never equal their returns. There was a period between the early 1980s and the late 1990s when the rate of return was projected to be 16-18%.
When the refund does not come, there is also a three-year wait, and sometimes much longer.
The figures I provided were based on the S&P 500. Large or little profits may be possible depending on an investor's ability or luck (luck is sometimes essential).
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