Professional Documents
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This case was prepared as the basis for class discussion rather than to
illustrate either effective or ineffective handling of an administrative situation.
Exhibit 1 Annual Total Returns 1926-1997 (in percent)
Year Inflation Treasury Bills Treasury Bonds Corporate Bonds Common Stocks
1926 -1.49 3.27 7.77 7.37 11.62
1927 -2.08 3.12 8.93 7.44 37.49
1928 -0.97 3.56 0.1 2.84 43.61
1929 0.2 4.75 3.42 3.27 -8.42
1930 -6.03 2.41 4.66 7.98 -24.9
1931 -9.52 1.07 -5.31 -18.5 -43.34
1932 -10.3 0.96 16.84 10.82 -8.19
1933 0.51 0.3 -0.07 10.38 53.99
1934 2.03 16 10.03 13.84 -1.44
1935 2.99 0.17 4.98 9.16 47.67
1936 1.21 0.18 7.52 6.74 33.92
1937 3.1 0.31 0.23 2.75 -35.03
1938 -2.78 -0.02 5.53 6.13 31.12
1939 -0.48 0.02 4.52 3.97 -0.41
1940 0.96 0 2.96 3.39 -9.78
1941 9.72 0.06 0.93 2.73 -11.59
1942 9.29 0.27 3.22 2.6 20.34
1943 3.16 0.35 2.08 2.83 25.9
1944 2.11 0.33 2.81 4.73 19.75
1945 2.25 0.33 10.73 4.08 36.44
1946 18.16 0.35 -0.1 1.72 -8.07
1947 9.01 0.5 -2.62 -2.34 5.71
1948 2.71 0.81 3.4 4.14 5.5
1949 -1.8 1.1 6.45 3.31 18.79
1950 5.79 1.2 0.06 2.12 31.71
1951 5.87 1.49 -3.93 -2.69 24.02
1952 0.88 1.66 1.16 3.52 18.37
1953 0.62 1.82 3.64 3.41 -0.99
1954 -0.5 0.86 7.19 5.39 52.62
1955 0.37 1.57 -1.29 0.48 31.56
1956 2.86 2.46 -5.59 -6.81 6.56
1957 3.02 3.14 7.46 8.71 -10.78
1958 1.76 1.54 -6.09 -2.22 43.36
1959 1.5 2.95 -0.39 -0.97 11.96
1960 1.48 2.66 13.78 9.07 0.47
1961 0.67 2.13 0.97 4.82 26.89
1962 1.22 2.73 6.89 7.95 -8.73
1963 1.65 3.12 1.21 2.19 22.8
1964 1.19 3.54 3.51 4.77 16.48
1965 1.92 3.93 0.71 -0.46 12.45
1966 3.35 4.76 4.69 0.2 -10.06
1967 3.04 4.21 -9.18 -4.95 23.98
1968 4.72 5.21 -0.26 2.57 11.06
1969 6.11 6.58 -5.07 -8.09 -8.5
1970 5.49 6.52 12.11 18.37 4.01
1971 3.36 4.39 13.23 11.01 14.31
1972 3.41 3.84 5.69 7.26 18.98
1973 8.8 6.93 -1.11 1.14 -14.66
1974 12.2 8 4.35 -3.06 -26.47
1975 7.01 5.8 9.2 14.64 37.2
1976 4.81 5.08 16.75 18.65 23.84
1977 6.77 5.12 -0.69 1.71 -7.18
1978 9.03 7.18 -1.18 -0.07 6.56
1979 13.31 10.38 -1.23 -4.18 18.44
1980 12.4 11.24 -3.95 -2.76 32.42
1981 8.94 14.71 1.86 -1.24 -4.91
1982 3.87 10.54 40.36 42.56 21.41
1983 3.8 8.8 0.65 6.26 22.51
1984 3.95 9.85 15.48 16.86 6.27
1985 3.77 7.72 30.97 30.09 32.16
1986 1.13 6.16 24.53 19.85 18.47
1987 4.41 5.47 -2.71 -0.27 5.23
1988 4.42 6.35 9.67 10.7 16.81
1989 4.65 8.37 18.11 16.23 31.49
1990 6.11 7.81 6.18 6.78 -3.17
1991 3.06 5.6 19.3 19.89 30.55
1992 2.9 3.51 8.05 9.39 7.67
1993 2.75 2.9 18.24 13.19 9.99
1994 2.67 3.9 -7.77 -5.76 1.31
1995 2.74 5.6 31.67 27.2 37.43
1996 3.32 5.21 -0.93 1.4 23.07
1997 1.7 5.26 15.88 12.95 33.36
Exhibit 2 Monthly Returns for Dow 30 Stocks
0.9
0.8
0.7
0.6
0.5
0.4
0.3
0.2
0.1
0
0.5
0.4
0.3
0.2
0.1
0
Exhibit 2 Monthly Returns for Dow 30 Stocks
UK US
Date Market Market
Stock Bond Stock Bond
Capitalizat Capitalizat
Return Return Return Return
ion ion
1981 12.83 184,752 2.08 -3.61 893,430 1.90
1982 28.52 191,266 51.53 22.44 1,049,433 39.16
1983 25.97 210,607 20.31 22.55 1,222,131 -0.58
1984 30.18 211,340 9.96 6.24 1,228,621 14.22
1985 22.84 302,349 11.14 32.23 1,554,711 29.74
1986 26.29 403,071 9.16 17.68 1,743,364 25.21
1987 7.90 562,787 21.88 4.74 1,800,268 -3.45
1988 10.08 567,570 9.54 17.84 1,956,196 9.94
1989 37.39 665,860 5.96 32.40 2,355,377 17.98
1990 -8.26 705,011 8.07 -3.49 2,186,563 6.85
1991 20.87 800,896 18.82 29.16 2,900,656 18.17
1992 19.55 757,364 14.30 5.90 3,074,287 8.07
1993 24.59 917,948 40.52 10.29 3,332,434 16.94
1994 -6.95 903,719 -9.98 1.56 3,296,047 -6.19
1995 26.36 1,097,924 18.07 36.99 4,935,800 31.54
1996 15.79 1,392,185 9.42 21.29 5,926,178 -1.44
1997 24.75 #DIV/0! 22.98 34.41 8,003,025 14.51
France
Market
Stock Bond
Capitalizat
Return Return
ion
-12.38 26,447 4.59
8.79 22,970 24.21
62.29 29,170 23.59
20.12 29,529 21.32
48.59 53,943 22.36
53.38 100,302 21.98
-26.77 103,591 3.14
56.81 150,582 20.30
33.17 217,189 4.80
-22.74 195,888 6.05
21.15 243,055 18.10
5.94 234,464 12.07
30.04 312,041 26.69
-14.36 330,407 -6.17
3.64 371,700 18.25
30.88 441,339 14.69
31.01 514,162 8.97
Japan
Market
Stock Bond
Capitalizat
Return Return
ion
21.90 358,043 18.49
5.72 439,744 10.83
26.49 509,844 9.47
29.18 509,844 10.48
14.16 725,436 10.59
56.86 1,455,105 14.17
8.13 2,137,715 7.84
38.09 2,964,727 5.36
20.47 3,150,654 -3.83
-38.94 2,027,842 -0.09
0.85 2,358,345 15.20
-21.42 1,826,976 12.66
13.59 2,270,842 17.13
7.08 2,747,311 -3.49
0.35 2,846,585 15.48
-6.98 2,386,941 3.75
-16.06 1,812,145 3.85
Switzerland
Market
Stock Bond
Capitalizat
Return Return
ion
-9.94 23,243 -0.14
12.70 22,587 13.72
26.15 25,662 3.07
1.56 21,677 1.99
58.91 41,534 6.25
10.95 64,444 7.43
-34.49 57,494 6.48
11.60 66,135 1.07
27.19 85,831 -3.84
-20.82 90,166 -0.20
20.91 116,529 8.14
24.60 145,659 14.02
48.05 212,466 15.70
-7.29 224,792 -4.28
28.05 329,869 18.50
19.37 339,927 5.03
53.42 482,030 8.94
Exhibit 2 Monthly Returns for Dow 30 Stocks
A B C D E F
31-Jan-90 -7.6 -2.7 -0.2 -1.3 -10.8 -7.3
28-Feb-90 4.7 -2.2 8.3 1.4 2.4 0
30-Mar-90 -2.2 12.1 12.3 0.6 6.6 4
30-Apr-90 -2.9 -17.2 -2.8 -2.4 2 -5.8
31-May-90 8.1 9.1 19 7.3 18.4 10.5
29-Jun-90 -3.4 -8.5 6.2 0.5 -1.2 0.6
31-Jul-90 7.8 -15.5 -1.3 13.9 2.3 -5.9
31-Aug-90 -12.3 -11.2 -16 -4.4 -6.9 6.9
28-Sep-90 -5.9 0 -13.7 -2.5 -6 -4.3
31-Oct-90 -2.2 -5.2 7.5 -7.9 13.6 3.2
30-Nov-90 12.6 4.2 -0.6 3.7 3.5 7.9
31-Dec-90 -0.3 25.5 2.5 3.9 0.5 -1.8
31-Jan-91 -1.4 0.8 8.8 -1.7 4.8 2.4
28-Feb-91 5 9.1 -1.8 6.5 7.4 3.8
28-Mar-91 -1.3 -14.7 -2.6 2.3 4 -0.3
30-Apr-91 12.1 0.9 -2.7 1.6 -2.8 -4.6
31-May-91 14.5 15.1 7.4 -4.5 8.5 3
28-Jun-91 -2.9 1.6 -6.4 -4.7 -4.4 -8.6
31-Jul-91 6.5 11.6 1.4 2.5 10.3 5.8
30-Aug-91 -0.4 -0.1 7.8 0.6 9.4 6.4
30-Sep-91 -6.5 -5.6 2 2.4 -1.5 -1.2
31-Oct-91 5.5 -9.6 -3 1.7 3.3 5.9
29-Nov-91 -5.9 -25.6 -9.6 -9.6 4.5 4.4
31-Dec-91 5.1 24.4 7.9 3.4 15.7 3.5
31-Jan-92 -0.3 3.6 6.5 -7.8 -3.4 4.7
28-Feb-92 0.4 2.6 -9.1 -1.8 5.5 -10.6
31-Mar-92 3 -0.8 -4.6 3.9 0.3 -9
30-Apr-92 13.9 -1.7 0.3 9 1.5 -2.5
29-May-92 -2 -2.6 0.3 3.5 6 1.9
30-Jun-92 -4.3 7.1 -9.1 -6.1 -8.8 0.6
31-Jul-92 6.2 -8.3 0.3 6.5 4.7 8.4
31-Aug-92 -7.1 -13.5 -6.3 4.1 2.7 2.9
30-Sep-92 -4.6 -3.1 -1.3 0.9 -5.5 0.6
30-Oct-92 2.7 7.5 -2 -4.2 0.3 -8.1
30-Nov-92 0.4 23 -1.7 -2 -1.8 3.7
31-Dec-92 -2.1 4.1 14.2 1.1 5.3 -3.3
29-Jan-93 -2.9 18 -12.2 4.7 1.2 23.1
26-Feb-93 2.3 -9.9 -1.8 7 0 8.5
31-Mar-93 4 3.7 1.8 8 1 1.2
30-Apr-93 8 11.3 8.6 3.6 -7.6 -10.1
28-May-93 2 -1.3 4.9 3.3 5.4 7.2
30-Jun-93 -10.7 -3.2 -6.6 -0.4 4 -3.4
30-Jul-93 -0.5 -22.7 6.4 0.7 0.6 7.3
31-Aug-93 4.7 -6.9 1.3 6.4 0.3 14.7
30-Sep-93 -4.4 6.5 -3.2 5 -2.2 -2.7
29-Oct-93 2.4 15.7 -2.3 -0.8 2.7 5.9
30-Nov-93 1.2 4.5 3.7 -9.5 -2.8 -2.4
31-Dec-93 1 17.3 12 0.3 6.3 -7.6
31-Jan-94 16.3 14.7 0 7.2 -8.4 -2.3
28-Feb-94 -4.3 -7 8.7 -6.2 4.3 -1.6
31-Mar-94 -0.5 -8.6 -4.8 -3 -4.2 3.2
29-Apr-94 7.8 1.3 1.1 6 2.8 -6.5
31-May-94 9.3 -4.3 3.6 -1.2 -3.6 13.9
30-Jun-94 -6 -3.2 -0.3 -3.7 1.4 2.7
29-Jul-94 1.9 19.5 -3.5 6 9.2 0.5
31-Aug-94 2.7 3.4 2.5 -3.5 3.7 3.7
30-Sep-94 -4.1 -8.7 -4.9 -1.8 6.1 4
31-Oct-94 2.8 -8.9 1.4 8.1 3.6 -7
30-Nov-94 -8.9 -7.2 2.8 -2 1.9 -4.6
30-Dec-94 4.2 1.4 4.7 2.3 0.7 4.9
31-Jan-95 -5.1 -13.2 -5.3 0 1.9 2.6
28-Feb-95 6.3 0.8 4.2 7.8 4.8 4.9
31-Mar-95 7.8 2.4 16.5 0.8 2.9 4.4
28-Apr-95 8.9 -12.4 2.3 -1.3 3.1 8
31-May-95 3.8 4.4 7.5 4.7 6 5.7
30-Jun-95 1.3 10.2 6.4 -5.6 3.8 0.4
31-Jul-95 -2.5 -3.1 7 6.5 2.9 -4.9
31-Aug-95 -1.6 -7.1 -4.1 -1 -2.1 0.9
29-Sep-95 5.2 -3.4 6.6 0.8 7.7 2.6
31-Oct-95 -9.3 -7.1 -4 -4.1 4.2 5.7
30-Nov-95 7.4 6.7 11.6 6.7 5.7 9.6
29-Dec-95 5.1 -0.9 7.5 6.1 -2 -1.8
31-Jan-96 9.8 9 -1.1 -1 1.5 9.5
29-Feb-96 0.4 -9.1 5 8.2 7.1 -2
29-Mar-96 8.5 -4.5 6.8 0.9 2.8 -0.7
30-Apr-96 -3.3 4.8 -5.2 3.3 -1.5 7.7
31-May-96 0.1 -7.3 4.1 3.9 12.9 -2.3
28-Jun-96 -0.8 -6.9 2.2 -1.3 6.8 4.5
31-Jul-96 2.1 -14.7 1.6 -1.9 -4.3 -4
30-Aug-96 2.4 1.2 2.6 2.7 7.2 -2.3
30-Sep-96 7.3 -2.4 4.4 6.4 1.5 8.3
31-Oct-96 5.2 -18.8 0.9 5 -0.7 1.4
29-Nov-96 2.2 10.8 4.5 2.7 1.5 2.4
31-Dec-96 -0.1 -1.4 7.2 -3 2.9 -1.1
31-Jan-97 16.5 -5.6 0.6 2.1 10 8.1
28-Feb-97 -1.6 -1.5 -4.8 -2 5.4 4
31-Mar-97 -1.2 0 -3.1 7.9 -8.4 -15.3
30-Apr-97 0.1 0 0 -1.6 14.1 9.4
30-May-97 2.9 21.2 7.1 3 7.7 0.2
30-Jun-97 15.8 4.4 0.7 5.6 -0.5 -7.4
31-Jul-97 6.7 7.8 10.6 6.8 1.7 -12.7
29-Aug-97 -6.6 6.7 -6.9 -1.2 -17.1 -1.8
30-Sep-97 -1.2 -14.1 -0.1 7.3 6.7 -0.7
31-Oct-97 -7.6 -3 -11.8 -0.2 -7.2 -7.8
28-Nov-97 7 2.5 11 -2.6 10.6 2
31-Dec-97 -0.8 -15.2 -7.9 -4 6.7 -0.1
30-Jan-98 -5.7 13.7 -2.7 -2.9 -2.9 7.7
27-Feb-98 8.8 7.6 14.2 9 6 1.2
31-Mar-98 10.9 27.6 -3.9 -0.7 13.1 -1.1
30-Apr-98 7.1 14.7 -4 3 -2 11.3
29-May-98 6.5 -21.3 -4.3 -2.7 3.3 -0.5
30-Jun-98 -3.2 1.5 -6.7 4.9 9.3 2.4
#DIV/0!
#DIV/0!