Problem

a With 20-20  hindsight,what was the best investment for the period 1926–35?b Why doesn’t...

a With 20-20  hindsight,what was the best investment for the period 1926–35?


b Why doesn’t everyone just buy small stocks as investments?


c What was the smallest return observed over the 83 years for each of these investments? Approximately when did it occur?


d About how many times did large stocks(common stocks)return more than 30 percent? How many times did they return less than –20 percent?


e What was the longest “winning streak”(years without a negative return)for large stocks? For long-term government bonds?


f How often did the T-bill portfolio have a negative return?

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