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Shares, Bonds, Treasury Notes, Property Trusts and Inflation: Historical Returns and Risks, 1974-1985

Author

Listed:
  • Ray Ball

    (The William E. Simon Graduate School of Business, University of Rochester)

  • John Bowers

    (The Australian Graduate School of Management, University of N.S.W.)

Abstract

Historical mean returns and risk measures are presented for four classes of assets, in both nominal and inflation-adjusted for M. Over the period 1974–85, Australian stocks and property earner appreciably more than inflation, whereas Government securities earned a zero or very low real rate of return. Equity returns were of course much riskier than bond returns, and property was more like equity than fixed interest securities in terms of risk. All four classes of investment assets were poor hedges against inflation.

Suggested Citation

  • Ray Ball & John Bowers, 1986. "Shares, Bonds, Treasury Notes, Property Trusts and Inflation: Historical Returns and Risks, 1974-1985," Australian Journal of Management, Australian School of Business, vol. 11(2), pages 117-137, December.
    • Handle: RePEc:sae:ausman:v:11:y:1986:i:2:p:117-137
    DOI: 10.1177/031289628601100201
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    References listed on IDEAS

    as
    1. Ray Ball & Philip Brown, 1980. "Risk and Return from Equity Investments in the Australian Mining Industry: January 1958 — February 1979," Australian Journal of Management, Australian School of Business, vol. 5(1-2), pages 45-66, April.
    2. Lawrence Fisher & James H. Lorie, 1968. "Rates of Return on Investments in Common Stock: The Year-by-Year Record, 1926-65," The Journal of Business, University of Chicago Press, vol. 41, pages 291-291.
    3. Officer, R R, 1973. "The Variability of the Market Factor of the New York Stock Exchange," The Journal of Business, University of Chicago Press, vol. 46(3), pages 434-453, July.
    4. Ibbotson, Roger G & Sinquefield, Rex A, 1976. "Stocks, Bonds, Bills, and Inflation: Year-by-Year Historical Returns (1926-1974)," The Journal of Business, University of Chicago Press, vol. 49(1), pages 11-47, January.
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    Cited by:

    1. Tim Brailsford & John C. Handley & Krishnan Maheswaran, 2008. "Re‐examination of the historical equity risk premium in Australia," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 48(1), pages 73-97, March.

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