T12.14 Average Annual Returns and Risk Premiums: 1926-1996 (Table 12.3)
Investment Average Return Risk Premium
Large company stocks 12.7% 8.9%
Small company stocks 17.7 13.9
Long-term corporate bonds 6.0 2.2
Long-term government bonds 5.4 1.6
U.S. Treasury bills 3.8 0.0
Source: © Stocks, Bonds, Bills and Inflation 1997 Yearbook™, Ibbotson Associates, Inc. Chicago (annually updates work by Roger G. Ibbotson and Rex A. Sinquefield). All rights reserved