Based on the information in Figure 9.5 and focusing on mean returns for all stocks, What is
Question:
Based on the information in Figure 9.5 and focusing on mean returns for "all stocks,"
What is the range of returns that are two standard deviations from the mean?
Transcribed Image Text:
Small stocks All stocks Large stocks 30-year treasury bonds 90-day T-bills Inflation Compound Returns (geometric) 16.9% 9.6% 9.2% 5.6% 3.9% 30% Mean Returns (arithmetic) 256% 11 .6% 11 .0% 6.3% 4.0% 3.1% Volatility (standard deviation) 49.1% 20.3% 19.2% 12.3% 3.4% 41%
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 63% (11 reviews)
As per the statistics the standard deviation is a measure that is used to quantify the amoun...View the full answer
Answered By
PALASH JHANWAR
I am a Chartered Accountant with AIR 45 in CA - IPCC. I am a Merit Holder ( B.Com ). The following is my educational details.
PLEASE ACCESS MY RESUME FROM THE FOLLOWING LINK: https://drive.google.com/file/d/1hYR1uch-ff6MRC_cDB07K6VqY9kQ3SFL/view?usp=sharing
3.80+
3+ Reviews
10+ Question Solved
Related Book For
Financial Management Concepts and Applications
ISBN: 978-0132936644
1st edition
Authors: Stephen Foerster
Question Posted:
Students also viewed these Finance questions
-
Based on the information in the preceding question, the audit team determined that the allowance for sampling risk was a. 2.2%. b. 5.0%. c. 7.8%. d. 10.0%.
-
Based on the information provided below, prepare the following financial state ments for VideoStores: a. An income statement for the calendar year 2010 b. A balance sheet on December 31, 2009 c. A...
-
Part 1 Materiality W&S Partners commenced the planning phase of the Cloud 9 audit with procedures to gain an understanding of the client's structure and its business environment. You have completed...
-
Mary Wells Lawrence once said, In this business, you can never wash the dinner dishes and say they are done. You have to keep doing them constantly. If you were a business executive or information...
-
The WACC is a weighted average of the costs of debt, preferred stock, and common equity. Would the WACC be different if the equity for the coming year came solely in the form of retained earnings...
-
Estimate with 99% confidence the difference in the amount of television (TVHOURS) between conservatives and liberals.
-
Explain precondition and post-condition by examples.
-
Recall our example of an investment of $100,000 in research that yields a pioneering invention that has no commercial value, and a subsequent investment of $50,000 in development that yields an...
-
Firm spends $100,000 building a new plant and lasts 3 years the CF is: - year 1: +$34,300 - year 2: +$34,300 -year 3: +$58,30 firm has no other plant calculate the expected return that Firm's...
-
The payroll records of Graham Computer Co. for the week ending October 7, the 40th week in the year, show the following: Required: 1. Complete a work sheet with the following column headings:...
-
Historical U.S. market returns tend to approximately follow a normal distribution, which implies that returns are plus or minus one standard deviation from the mean (arithmetic return) two-thirds of...
-
What factors would impact the price of preferred shares?
-
A column in the Washington Post argues that network externalities turn market forces on their head. Consider two new productsproduct A and product Bneither of which receives patent protection. Assume...
-
Describe three ways of handling instruments that are dependent on interest rates when the model-building approach is used to calculate VaR. How would you handle these instruments when historical...
-
Identify another research question that Shuang needs to answer and develop some alternative search terms to research this question using a general search engine, a deep web search engine, or an...
-
Encourage students to share examples of their own paperless (or paper-bound) communication styles. How has paper use been encouraged or discouraged in the organizations and companies where they have...
-
Deep Seas Submarine must implement a new engine in its submarines to meet the needs of clients who desire quieter operation. Two designs, both technologically feasible, have been created, and Deep...
-
Are there any topics on which you are already a Level 2 expert (i.e., someone who has deep knowledge about a topic)? How did you gain that expertise? What research sources or approaches would you...
-
Find the probability that a randomly selected adult has an IQ greater than 131.5 (the requirement for membership in the Mensa organization). Assume that adults have IQ scores that are normally...
-
Catherine (aged 42) and Johnson (aged 45) have been married for 12 years. Johnson is a project manager of an event company at a monthly salary of $55,000 with an additional one-month salary of...
-
Rework Problem 12-2 using the Black-Scholes model to estimate the value of the option: The risk-free rate is 6 percent. (Hint: Assume the variance of the projects rate of return is 1.11 percent.)
-
Define each of the following terms: a. Real options; managerial options; strategic options; embedded option b. Investment timing option; growth option; abandonment option; flexibility option c....
-
Define each of the following terms: a. Real options; managerial options; strategic options; embedded option b. Investment timing option; growth option; abandonment option; flexibility option c....
-
What is Fibonacci heap? Explain CONSOLIDATE operation with suitable example for Fibonacci heap ?
-
Discuss the impact of global supply chain disruptions, exacerbated by events like the COVID-19 pandemic, on inventory management strategies and market resilience across various industries?
-
A pharmaceutical retailer decided to host a website for home delivery of medicines according to user orders. The web application is deployed on a single Amazon EC2 instances. within a few months, the...
Study smarter with the SolutionInn App