Question

Since the stock market crash of 1929, what is the average return (in %) the stock market has risen? _____________________________.

(This is the complete question )

Answer 1

The Stock Market Crash of 1929 began on October 24. While it is remembered for the panic selling in the first week, the largest falls occurred in the following two years. The Dow Jones Industrial Average did not bottom out until July 8, 1932, by which time it had fallen 89% from its September 1929 peak, making it the biggest bear market in Wall Street’s history. The Dow Jones did not return to its 1929 high until November 1954.

Between 1926 and 2014, returns were in that “average” band of 8% to 12% only six times. The rest of the time they were much lower or, usually, much higher. Volatility is the state of play in the stock market.

But even when the market is volatile, returns tend to be positive in a given year. Of course, it doesn’t rise every year, but over time the market has gone up in about 70% of years.

The Dow Jones Industrial Average’s inception date was May 26, 1896. Through May 25, 2018, the index’s average annual return has been 5.42%. This has varied over time, of course. For the 25-year period ending January 6, 2012, the index had an average annual return of 7.55%. For the 91 years prior to 1987, the average annual return was about 4.3%.

The S&P 500 index began in 1926 and was know as the Composite Index. The index was originally composed of 90 stocks. In 1957 the index adopted its current format of including 500 stocks. Average annual returns for the index from 1957 through the end of 2018 were about 7.96%. The average annual return from its inception in 1926 through the end of 2018 was about 10%.

Note: To give a practical example i have used the annual returns for S&P 500 for the period 1930 to 2019 and the average gives a result of 11.72578%.

Please check the below link and use this data to find an average.

https://www.investopedia.com/ask/answers/042415/what-average-annual-return-sp-500.asp