Ross et al.: Fundamentals
of Corporate Finance, Sixth
Edition, Alternate EditionV. Risk and Return 12. Some Lessons from
Capital Market History(^422) © The McGraw−Hill
Companies, 2002
CHAPTER 12 Some Lessons from Capital Market History 393
TABLE 12.1
Year-to-Year Total
Returns: 1926–2000Large- Long-Term U.S. Consumer
Company Government Treasury Price
Date Stocks Bonds Bills Index
12/31/26 13.76 6.40 4.40 1.12
12/31/27 35.70 0.18 4.21 2.26
12/31/28 45.07 0.18 4.87 1.16
12/31/29 8.80 5.66 6.05 0.58
12/31/30 25.13 4.16 3.72 6.40
12/31/31 43.60 0.41 2.63 9.32
12/31/32 8.74 5.61 2.95 10.27
12/31/33 52.94 5.92 1.66 0.76
12/31/34 2.31 5.95 1.04 1.52
12/31/35 46.79 3.22 0.29 2.99
12/31/36 32.49 1.73 0.15 1.45
12/31/37 35.46 4.63 0.44 2.86
12/31/38 31.63 4.74 0.07 2.78
12/31/39 1.43 2.26 0.00 0.00
12/31/40 10.36 4.25 0.00 0.71
12/31/41 12.02 1.56 0.07 9.93
12/31/42 20.75 1.82 0.36 9.03
12/31/43 25.38 2.00 0.36 2.96
12/31/44 19.49 2.28 0.36 2.30
12/31/45 36.20 5.23 0.36 2.25
12/31/46 8.42 0.54 0.43 18.13
12/31/47 5.05 0.93 0.57 8.84
12/31/48 4.99 2.62 0.99 2.99
12/31/49 17.80 4.53 1.12 2.07
12/31/50 30.05 0.92 1.25 5.93
12/31/51 23.79 0.14 1.51 6.00
12/31/52 18.39 2.42 1.76 0.75
12/31/53 1.07 2.32 1.93 0.75
12/31/54 52.23 3.07 0.98 0.74
12/31/55 31.62 0.69 1.68 0.37
12/31/56 6.91 1.61 2.66 2.99
12/31/57 10.50 6.75 3.34 2.90
12/31/58 43.57 1.61 1.79 1.76
12/31/59 12.01 1.89 3.35 1.73
12/31/60 0.47 11.04 3.13 1.36
12/31/61 26.84 2.24 2.32 0.67
12/31/62 8.75 6.03 2.80 1.33
12/31/63 22.70 1.42 3.20 1.64
12/31/64 16.42 3.89 3.56 0.97
12/31/65 12.38 1.05 4.02 1.92
12/31/66 10.06 4.81 4.90 3.46
12/31/67 23.98 2.36 4.49 3.04
12/31/68 11.03 1.66 5.42 4.72
12/31/69 8.43 4.82 6.81 6.20
12/31/70 3.94 18.15 6.68 5.57
12/31/71 14.30 11.39 4.51 3.27
12/31/72 18.99 2.51 4.04 3.41(continued)