Until the 90s information on risk premiums based on empirical studies for the German capital market was only available sporadically and for short time horizons. Therefore a long term comparison of risk and return was not possible. Markus Morawietz investigates profitability and risk of German stock and bond investments since 1870. He takes inflation and tax issues into account. His work contains a comprehensive collection of primary data since 1870 on key figures on a monthly basis which describe the German capital market. The goal of the study is to identify empirical statements on parameters of the German capital market. Therefore the exposition of theoretical economic models is not of primary importance in this study. A special focus is on the potential applicability of existing Germen index numbers as base data on the empirical investigation. The first chapter “methodological bases of performance measurement” concludes with the definition of the term “performance”. The following hypothesis is tested within this study: “There is a risk premium on securities taking inflation and influences of taxes into account.” The test of this hypothesis is run over the longest time period possible. Therefore monthly data on stock and bond investment are subject of the investigation because they are the most actively traded assets. Furthermore a substitute for the risk-free investment was developed in order to determine the risk premium. Before the explicit performance measurement of the different assets takes place, empirical starting points for performance measurement will be defined. These starting points contain a relevant demarcation of the investigation period and a description of the historical events during the investigation periods for all periods. Hereby special consideration is given to the specific problems of long term German value series (interruption trough the First World War with the following Hyperinflation and the Second World War). The analysis of the basics of performance measurement concludes the empirical starting points for performance measurement. The starting points contain the definition of a substitute for the certain segment, the description and preparation of the underlying data material and the calculation method used to determine performance. The third chapter contains a concrete empirical evaluation of the available data. This evaluation is subdivided into two parts: (a) performance measurement with unadjusted original data and (b) performance measurement with adjusted primary data (adjusted for inflation and tax influences). Both parts are structured in the same way. First the performance measurement of the specific asset (stocks, bonds and risk-free instruments) will be undertaken each by itself subdivided by partial periods. Afterwards the results of the performance measurement over the entire investigation period will be analyzed. The collection of derived partial results in the then following chapter shows return risk differences between the different assets. To calculate the net performance the nominal primary data is adjusted by inflation and tax influences. Therefore measured values for the changes in price level and for tax influences will be determined in the beginning of the third chapter. Following the performance measurement will be undertaken with the adjusted primary data. A comparison of the most important results of the different analysis in the last chapter concludes. Data tables in histat (topic: money and currencies): A. Discount and Lombard rate A.1 Discount rate: monthly average values, yearly average values (1870-1992) A.2 Lombard rate: monthly average values, yearly average values (1870-1992) B. Stock price index, dividends and bond market und B.1a Stock price index: monthly average values, yearly average values (1870-1992) B.2 Dividends: monthly average values (1870-1992) B.3 Bond market: monthly average values, yearly average values (1870-1992) C. Risk free instrument C.1 Private discount rate: monthly average values, yearly average values (1870-1991) C.2 Overnight rate: monthly average values, yearly average values (1924-1992) D. Inflation rate D.1 Price index for costs of living (base1913/14 = 100), monthly average values, yearly average values (1870-1992) D.2 Inflation rate (base 1913 = 100), M monthly average values, yearly average values (1870-1992)