Average rates of return on Treasury bills, government bonds, and common stocks, 1900-2020. Average Annual Average...

 

Transcribed Image Text:

Average rates of return on Treasury bills, government bonds, and common stocks, 1900-2020. Average Annual Average Premium (Extra Rate of Return return versus Treasury (8) bills) (%) Portfolio Treasury bills Treasury bonds Common stocks Standard deviation of returns, 1900-2020. Portfolio Treasury bills Long-term government bonds Common stocks 3.7 5.4 11.5 a. Average rate of return b. Average risk premium c. Standard deviation of returns Standard Deviation (%) 2.8 8.9 19.5 a. What was the average rate of return on large U.S. common stocks from 1900 to 2020? b. What was the average risk premium on large stocks? c. What was the standard deviation of returns on common stocks? Note: Enter your answer as a percent rounded to 1 decimal place. 1.7 7.8 % % % Average rates of return on Treasury bills, government bonds, and common stocks, 1900-2020. Average Annual Average Premium (Extra Rate of Return return versus Treasury (8) bills) (%) Portfolio Treasury bills Treasury bonds Common stocks Standard deviation of returns, 1900-2020. Portfolio Treasury bills Long-term government bonds Common stocks 3.7 5.4 11.5 a. Average rate of return b. Average risk premium c. Standard deviation of returns Standard Deviation (%) 2.8 8.9 19.5 a. What was the average rate of return on large U.S. common stocks from 1900 to 2020? b. What was the average risk premium on large stocks? c. What was the standard deviation of returns on common stocks? Note: Enter your answer as a percent rounded to 1 decimal place. 1.7 7.8 % % %

Answer rating: 100% (QA)

SOLUTION a The average rate of return on large US common stocks from 1900 to 2020 can be calculated ... View the full answer