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

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?

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%

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