Consider the following table for the total annual returns for a given period of time. Series Average
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Question:
Consider the following table for the total annual returns for a given period of time. |
Series | Average return | Standard Deviation | ||
Large-company stocks | 11.2 | % | 19.4 | % |
Small-company stocks | 16.4 | 33.0 | ||
Long-term corporate bonds | 6.2 | 8.4 | ||
Long-term government bonds | 6.1 | 9.4 | ||
Intermediate-term government bonds | 5.6 | 5.7 | ||
U.S. Treasury bills | 3.8 | 3.1 | ||
Inflation | 3.1 | 4.2 | ||
Requirement 1: | |
What range of returns would you expect to see 95 percent of the time for large-company stocks? (Negative amount should be indicated by a minus sign. Input your answers from lowest to highest to receive credit for your answers. Do not round intermediate calculations. Enter your answers as a percentage rounded to 2 decimal places (e.g., 32.16).) |
Expected range of returns | % to % |
Requirement 2: | |
What about 99 percent of the time? (Negative amount should be indicated by a minus sign. Input your answers from lowest to highest to receive credit for your answers. Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).) |
Expected range of returns | % to % |
Related Book For
Corporate Finance Core Principles and Applications
ISBN: 978-0077905200
3rd edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford
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