Returns on stocks. How well have stocks done over the past generation? TheStandard &

Chapter 0, Problem 2.39

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Returns on stocks. How well have stocks done over the past generation? TheStandard & Poors 500 stock index describes the average performance of thestocks of 500 leading companies. Because the average is weighted by the totalmarket value of each companys stock, the index emphasizes larger companies.Here are the real (that is, adjusted for the changing buying power of the dollar)returns on the S&P 500 for the years 1972 to 2004:

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