Refer back to Figure 10.10. What range of returns would you expect to see 68 percent of
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Refer back to Figure 10.10. What range of returns would you expect to see 68 percent of the time for long-term corporate bonds? What about 95 percent of the time?
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FIGURE 10.10 Historical average returns, standard deviations, and trequency distributions: 1926-2011 Standard Deviation (%) 32.5 Serles Mean (96) Distribution (%) Small-company stocks 16.5 11.8 Large-company stocks 20.3 Long-tem corporate bonds 6.4 8.4 Long-tem government bonds 6.1 9.8 5.5 Intermedlate-ternm government bonds 5.7 U.S. Treasury bills 3.6 3.1 Intation 3.1 4.2 A0 90 The 1933 small-company stocks total retum was 142.9 percent
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Related Book For
Essentials of Corporate Finance
ISBN: 978-0078034756
8th edition
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
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