AAPL 141.66 +3.39 2.4517243FB 196.64 +0.990005 0.50600845GOOG 2370.76 +117.07 5.194595MSFT 267.7 +8.84003 3.414984NVDA 171.26 +9.00999 5.5531554WBA 41.65 +0.760002 1.8586503ZNGA 8.18 -0.17 -2.035929

Market Risk Premium

Historical average realized returns

Data

Year	S&P 500	T-Bond	Dividend	Dividend %	T-Bond Return	T-Bill Return	S&P 500 Return
1927	17.66	3.17%	0.62	3.51%
1928	24.35	3.45%	1.05	4.31%	0.84%	3.08%	43.83%
1929	21.45	3.36%	0.88	4.10%	4.20%	3.16%	-8.30%
1930	15.34	3.22%	0.72	4.69%	4.54%	4.55%	-25.13%
1931	8.12	3.93%	0.50	6.16%	-2.56%	2.31%	-43.81%
1932	6.92	3.35%	0.50	7.23%	8.79%	1.07%	-8.62%
1933	9.97	3.53%	0.41	4.11%	1.86%	0.96%	50.00%
1934	9.5	3.01%	0.35	3.68%	7.96%	0.32%	-1.20%
1935	13.43	2.84%	0.51	3.80%	4.47%	0.18%	46.74%
1936	17.18	2.59%	0.54	3.14%	5.02%	0.17%	31.94%
1937	10.55	2.73%	0.56	5.31%	1.38%	0.30%	-35.33%
1938	13.14	2.56%	0.50	3.81%	4.21%	0.08%	29.29%
1939	12.46	2.35%	0.54	4.33%	4.41%	0.04%	-1.07%
1940	10.58	2.01%	0.55	5.20%	5.40%	0.03%	-10.67%
1941	8.69	2.47%	0.54	6.21%	-2.02%	0.08%	-12.76%
1942	9.77	2.49%	0.59	6.04%	2.29%	0.34%	19.22%
1943	11.67	2.49%	0.55	4.71%	2.49%	0.38%	25.08%
1944	13.28	2.48%	0.61	4.59%	2.58%	0.38%	19.02%
1945	17.36	2.33%	0.68	3.92%	3.80%	0.38%	35.84%
1946	15.3	2.24%	0.60	3.92%	3.13%	0.38%	-8.41%
1947	15.3	2.39%	0.80	5.23%	0.92%	0.57%	5.23%
1948	15.2	2.44%	0.97	6.38%	1.95%	1.02%	5.69%
1949	16.79	2.19%	1.19	7.09%	4.66%	1.10%	18.29%
1950	20.43	2.39%	1.53	7.49%	0.43%	1.17%	30.79%
1951	23.77	2.70%	1.50	6.31%	-0.30%	1.48%	23.69%
1952	26.57	2.75%	1.51	5.68%	2.27%	1.67%	18.13%
1953	24.81	2.59%	1.44	5.80%	4.14%	1.89%	-1.20%
1954	35.98	2.51%	1.87	5.20%	3.29%	0.96%	52.56%
1955	45.48	2.96%	2.23	4.90%	-1.34%	1.66%	32.60%
1956	46.67	3.59%	2.19	4.69%	-2.26%	2.56%	7.43%
1957	39.99	3.21%	1.80	4.50%	6.80%	3.23%	-10.46%
1958	55.21	3.86%	2.26	4.09%	-2.10%	1.78%	43.71%
1959	59.89	4.69%	1.98	3.31%	-2.65%	3.26%	12.06%
1960	58.11	3.84%	1.98	3.41%	11.64%	3.05%	0.33%
1961	71.55	4.06%	2.04	2.85%	2.06%	2.27%	26.64%
1962	63.1	3.86%	2.15	3.41%	5.69%	2.78%	-8.81%
1963	75.02	4.13%	2.35	3.13%	1.68%	3.11%	22.61%
1964	84.75	4.18%	2.58	3.04%	3.73%	3.51%	16.41%
1965	92.43	4.62%	2.83	3.06%	0.72%	3.90%	12.40%
1966	80.33	4.84%	2.88	3.59%	2.91%	4.84%	-9.98%
1967	96.47	5.70%	2.98	3.09%	-1.58%	4.33%	23.80%
1968	103.86	6.03%	3.04	2.93%	3.27%	5.26%	10.81%
1969	92.06	7.65%	3.24	3.52%	-5.01%	6.56%	-8.24%
1970	92.15	6.39%	3.19	3.46%	16.75%	6.69%	3.56%
1971	102.09	5.93%	3.16	3.10%	9.79%	4.54%	14.22%
1972	118.05	6.36%	3.19	2.70%	2.82%	3.95%	18.76%
1973	97.55	6.74%	3.61	3.70%	3.66%	6.73%	-14.31%
1974	68.56	7.43%	3.72	5.43%	1.99%	7.78%	-25.90%
1975	90.19	8.00%	3.73	4.14%	3.61%	5.99%	36.99%
1976	107.46	6.87%	4.22	3.93%	15.98%	4.97%	23.83%
1977	95.1	7.69%	4.86	5.11%	1.29%	5.13%	-6.98%
1978	96.11	9.01%	5.18	5.39%	-0.78%	6.93%	6.51%
1979	107.94	10.39%	5.97	5.53%	0.67%	9.94%	18.52%
1980	135.76	12.84%	6.44	4.74%	-2.99%	11.22%	31.74%
1981	122.55	13.72%	6.83	5.57%	8.20%	14.30%	-4.70%
1982	140.64	10.54%	6.93	4.93%	32.81%	11.01%	20.42%
1983	164.93	11.83%	7.12	4.32%	3.20%	8.45%	22.33%
1984	167.24	11.50%	7.83	4.68%	13.73%	9.61%	6.15%
1985	211.28	9.26%	8.20	3.88%	25.71%	7.49%	31.24%
1986	242.17	7.11%	8.19	3.38%	24.28%	6.04%	18.50%
1987	247.08	8.99%	9.17	3.71%	-4.96%	5.72%	5.81%
1988	277.72	9.11%	10.22	3.68%	8.22%	6.45%	16.54%
1989	353.4	7.84%	11.73	3.32%	17.69%	8.11%	31.47%
1990	330.22	8.08%	12.35	3.74%	6.24%	7.55%	-3.06%
1991	417.09	7.09%	12.97	3.11%	15.00%	5.61%	30.23%
1992	435.71	6.77%	12.64	2.90%	9.36%	3.41%	7.49%
1993	466.45	5.77%	12.69	2.72%	14.21%	2.98%	9.97%
1994	459.27	7.81%	13.36	2.91%	-8.04%	3.99%	1.32%
1995	615.93	5.71%	14.17	2.30%	23.48%	5.52%	37.20%
1996	740.74	6.30%	14.89	2.01%	1.43%	5.02%	22.68%
1997	970.43	5.81%	15.52	1.60%	9.94%	5.05%	33.10%
1998	1229.23	4.65%	16.20	1.32%	14.92%	4.73%	28.34%
1999	1469.25	6.44%	16.71	1.14%	-8.25%	4.51%	20.89%
2000	1320.28	5.11%	16.27	1.23%	16.66%	5.76%	-9.03%
2001	1148.09	5.05%	15.74	1.37%	5.57%	3.67%	-11.85%
2002	879.82	3.82%	16.08	1.83%	15.12%	1.66%	-21.97%
2003	1111.91	4.25%	17.39	1.56%	0.38%	1.03%	28.36%
2004	1211.92	4.22%	19.44	1.60%	4.49%	1.23%	10.74%
2005	1248.29	4.39%	22.22	1.78%	2.87%	3.01%	4.83%
2006	1418.3	4.70%	24.88	1.75%	1.96%	4.68%	15.61%
2007	1468.36	4.02%	27.73	1.89%	10.21%	4.64%	5.48%
2008	903.25	2.21%	28.39	3.14%	20.10%	1.59%	-36.55%
2009	1115.1	3.84%	22.41	2.01%	-11.12%	0.14%	25.94%
2010	1257.64	3.29%	22.73	1.81%	8.46%	0.13%	14.82%
2011	1257.6	1.88%	26.43	2.10%	16.04%	0.03%	2.10%
2012	1426.19	1.76%	31.25	2.19%	2.97%	0.05%	15.89%
2013	1848.36	3.04%	36.28	1.96%	-9.14%	0.07%	32.15%
2014	2058.9	2.17%	39.44	1.92%	10.79%	0.05%	13.52%
2015	2043.9	2.27%	43.00	2.10%	1.28%	0.21%	1.36%
2016	2238.83	2.45%	45.03	2.01%	0.69%	0.51%	11.74%

Arithmetic Average

Year	S&P 500 Return	T-Bill Return	T-Bond Return
1928-2016	11.42%	3.46%	5.18%
1967-2016	11.45%	4.88%	7.08%
2007-2016	8.64%	0.74%	5.03%

Geometric Average

Year	S&P 500 Return	T-Bill Return	T-Bond Return
1928-2016	9.53%	3.38%	4.91%
1967-2016	10.09%	4.83%	6.66%
2007-2016	6.88%	0.73%	4.58%

Risk Premium Arithmetic Average

Year	Risk Premium T-Bill Return	Risk Premium T-Bond Return
1928-2016	7.96%	6.24%
1967-2016	6.57%	4.37%
2007-2016	7.90%	3.62%

Risk Premium Geometric Average

Year	Risk Premium T-Bill Return	Risk Premium T-Bond Return
1928-2016	6.15%	4.62%
1967-2016	5.25%	3.42%
2007-2016	6.15%	2.30%

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