Introduction to Corporate Finance

Ross et al.: Fundamentals

of Corporate Finance, Sixth

Edition, Alternate Edition

V. Risk and Return 12. Some Lessons from

Capital Market History

(^420) © The McGraw−Hill
Companies, 2002
CHAPTER 12 Some Lessons from Capital Market History 391

FIGURE 12.7

 10

1925 1935 1945 1955 1965 1975 1985 1995 2000

50

40

30

20

10

0

Total

returns (%)

Year

Long-term government bonds

Source: ©Stocks, Bonds, Bills, and Inflation 2001 Yearbook™, Ibbotson Associates, Inc., Chicago (annually updates work

by Roger G. Ibbotson and Rex A. Sinquefield). All rights reserved.

Year-to-Year Total Returns on Bonds and Bills: 1926–2000

 2

1925 1935 1945 1955 1965 1975 1985 1995 2000

16

2

4

6

8

10

12

14

0

Total

returns (%)

Year

U.S. Treasury bills