Table 1. Compound annual real returns, by type of investment, (in percent)

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2 Tabl 1. Compound annual al uns, by yp of invsmn, in pcn iod Socks Bonds Bills old Inflaion Souc: Sil Tabl 2. Equiy pmiums: Diffncs in annual as of un bwn socks and fixd-incom asss, iod Wih bonds Wih bills Souc: Sil Equiy pmium pcn

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5 Cha 1. ic-dividnd aio and pic-anins aio, ic-dividnd aio ic-anins aio Ya Souc: Rob Shill, Yal Univsiy. Availabl a No: Ths aios a basd on Sandad and oo's Composi Sock ic Indx. Cha 2. Raio of mak valu of socks o oss domsic poduc, Ya Souc: Buau of Economic Analysis daa fom h naional incom and poduc accouns and fdal flow of funds.

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7 Tabl 3. Rquid pcna dclin in al sock pics ov h nx 10 yas o jusify a un of 7.0, 6.5, and 6.0 pcn haf cna dclin o jusify a lon-un un of Adjusd dividnd yild Souc: Auho s calculaions. No: Divd fom h odon fomula. Dividnds a assumd o ow in lin wih oss domsic poduc D, which h Offic of h Chif Acuay OCACT assums is 2.0 pcn ov h nx 10 yas. Fo lon-un D owh, OCACT assums 1.5 pcn.

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14 Y Y 0 a D D 0 0 a D d d 0 / } / 0{ }/ 0{ a a a 1} / 0}{ 0 / { }/ 0}{ 0 / { / a Y a a Y Y a

15 / 1 / 1 R D R D / 1 1 / 1 1 / 1 / R X R D R D X /

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