STOCK RETURNS AND BOND YIELDS IN DENMARK, 1922-99

This paper presents long time series of stock and bond returns for Denmark <p> from 1922 to 1999. Average stock returns are low in an international context, but <p> returns (and volatility) have increased sharply since 1983 which may be explained by <p> major changes in economic policy and liberalizations of capital flows. On the other <p> hand, Danish bond yields are high in general, and in particular from the late 1960s to <p> the mid 1980s. Thus, there are several periods in which bonds have given higher <p> returns than stocks. Over the entire sample, however, equity clearly outperforms <p> bonds.