Faculty Publications

Title

Needles in a Stock Picker’s Haystack: Can You Find the 4%?

Document Type

Article

Publication Date

6-30-2017

Abstract

We all know that over long time periods, stock returns have exceeded bond returns, and bond returns have exceeded Treasury bill returns. From 1926 through 2016, according to data compiled by Ibbotson Associates, large capitalization stocks returned 10% compounded annually, long-term corporate bonds returned 6% compounded annually, and Treasury bills returned 3.5% compounded annually.