Abstract
ABSTRACT We examine the impact of large positive and negative returns for bond and stock portfolios. We use Ibbotson Associates' Large-Capitalization Stock and Long-Term Corporate Bond portfolio return series. Previous studies have shown that a stock portfolio's returns are highly impacted by the few extremely large and small returns in the series. We confirm this result for the updated large-capitalization stock return dataset. We extend previous findings by showing that extreme values impact bond returns in a similar manner. We also show the impact of extreme returns on ten to forty year investment periods. Keywords bond and stock returns, return statistics, return outliers
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
