Assume that long-term corporate bonds had an average return of 6.3 percent and a standard deviation of

Fantastic news! We've Found the answer you've been seeking!

Question:

Assume that long-term corporate bonds had an average return of 6.3 percent and a standard deviation of 8.3 percent for a 30-year period. What range of returns would you expect to see on these bonds 68 percent of the time?

Related Book For answer-question

Corporate Finance Core Principles And Applications

ISBN: 9781260571127

6th Edition

Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford Jordan

See More Books

Posted Date: Dec 09, 2023 05:56 AM

See More Questions

Use the graph of the rate of change to sketch a graph of the function, starting from the given initial condition. Start from x(0) = 1. 05 8 10 -0.5 Time
Assume that for a period of time, long-term corporate bonds had an average return of 8.0 percent with a standard deviation of 12.0 percent. What is the 95 percent probability range of returns?
Refer back to Table 10.2 . 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? Average Return Standard Series...
Craps is a dice game in which two fair dice are cast. If the roller shoots a 7 or 11 on the rst roll, he or she wins. If the roller shoots a 2, 3, or 12 on the rst roll, he or she loses. (a) Compute...
Corners Ltd. owns and manages three convenience stores. The following information has been collected for the year 2015: Required 1. Compute the ROI for each store, where investment is measured at (a)...
Wild, Wood and Bine enter into a joint venture for dealing in antique brass figures. The following transactions took place: You are required to show the joint venture accounts in the books of each of...
Refer to Exercise 5-6 and prepare journal entries to record each of the merchandising transactions assuming that the periodic inventory system is used by both the buyer and the seller, Exercise 5-6...
Determining and interpreting fixed cost variances Sloan Company established a predetermined fixed overhead cost rate of $29 per unit of product. The company planned to make 7,000 units of product but...
Ex-13: The order is for Zithromax PO 500 mg on day 1, then 250 mg qd on days 2-5 for a total dos of 1.5 g. The label shows 200mg per 5 mL. a) How many should be given on day 1? b) How many should be...
Mack Precision Tool and Die has two production departments, Fabricating and Finishing, and two service departments, Repair and Quality Control. Direct costs for each department and the proportion of...
Specific Identification, FIFO, LIFO, and Weighted-Average SwingCompany's beginning inventory and purchases during the fiscal yearended September 30, 20-2, were as shown. Units Unit Price TotalCost 2...
Question 3 2/2 pts Genesis Company includes one detachable coupon in each price tag of jersey shirts it sells. A set of Nike baller bands is offered as a premium to customers who send in two coupons...
Mattice Corporation is considering investing $ 7 8 0 , 0 0 0 in a project. The life of the project would be 1 1 years. The project would require additional working capital of $ 2 8 , 0 0 0 , which...
Calculate the flexible budget variance for fixed costs. The static budget, at the beginning of the month, for Amira Company follows: Static budget: Sales volume: 1,000 units; Sales price: $70 per...
Textbook: International, D. (2017). DAMA-DMBOK: Data Management Body of Knowledge .United States:Technics Publications. PART 1: Master and Reference Data Management As discussed, the management of...
Why do you think Godcreatedthe concept of accounting? How hasfallenmankind mis-directed the accounting industry? How would a Christian helpredeemthe accounting industry? * Put the answers in bullet...
The past can offer us an opportunity to understand and fine tune our understanding of the present and future. Discuss key factors that lead to the Great Recession of 2017. Explain why these factors...
You have accepted the engagement of auditing the financial statements of the C. Reis Company, a small manufacturing firm that has been your auditee for several years. Because you were busy writing...
In the previous problem, suppose the fixed asset actually qualifies for 100 percent bonus depreciation. All the other facts are the same. What is the new NPV? Data from Previous Problem You have been...
Metallica Bearings, Inc., is a young start-up company. No dividends will be paid on the stock over the next 9 years because the firm needs to plow back its earnings to fuel growth. The company will...
Compute the future value of $2,430 continuously compounded for: a. Five years at an annual percentage rate of 14 percent. b. Three years at an annual percentage rate of 6 percent. c. Ten years at an...
You are evaluating a new cookie-baking oven. The Cookie Munster costs $$90,000,$ has a seven-year life, and has an annual Operating Cash Flow (OCF), after tax, of -$$8,000$ per year. If your...
Joe Vida owns the Peace Barber simple . He employs five barbers and pays each a base rate of $1,200 per month. One of the barbers serves as the manage) and receives an extra $600 per month. In...
Suppose you are considering an investment that grew by 32 percent across a five-year holding period. If you wanted to state this rate of return as an effective annual rate (that is, with annual...

Assume that long-term corporate bonds had an average return of 6.3 percent and a standard deviation of

Question:

Expert Answer:

This is a statistics question relating to the concept of normal distribution The 6... View the full answer

Corporate Finance Core Principles And Applications

Students also viewed these accounting questions