... in the S&P 500 index at the start of 1926 grew to$1,659.03 at the end of 1997. At the other end of the return spectrum, the T-bond portfolio grew tojust $36.35, and the T-bill portfolio ... generally, what determines the relative sizes of the risk premiums for thedifferent assets? These questions speak to the heart of the modern theory of investments, and we willdiscuss the issues ... $1,079,159. But with annual returns of only 8 percent youwill have just $430,792. Are these investment returns realistic over a longperiod of time? Based on the history of financial markets, the answerappears...