Principles of Corporate Finance

0,1

10

1000

1925 1933 1941 1949 1957 1965 1973 1981 1989 1997

S&P

Small Cap

Corp Bonds

Long Bond

T Bill

The Value of an Investment of $1 in 1926

Source: Ibbotson Associates

Index

Year End

1

613

203

6.15

4.34

1.58

Real returns