Consider the following table for a period of six years: Year 123456 Returns Large- U.S. Company...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Consider the following table for a period of six years: Year 123456 Returns Large- U.S. Company Treasury Bills Stocks - 15.19% 7.39% -26.62 8.04 37.33 5.97 24.03 5.57 - 7.36 5.50 6.67 7.79 a-1. Calculate the arithmetic average returns for large-company stocks and T-bills over this time period. (Do not round Intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) a-2. Calculate the standard deviation of the returns for large-company stocks and T-bills over this time period. (Do not round Intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Large-company stocks a-1. Arithmetic average return a-2. Standard deviation % T-bills % Calculate the observed risk premium in each year for the large-company stocks versus the T-bills. b-1. What was the arithmetic average risk premium over this period? (A negative answer should be Indicated by a minus sign. Do not round Intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b-2. What was the standard deviation of the risk premium over this period? (Do not round Intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b-1. Average risk premium % b-2. Risk premium standard deviation % Consider the following table for a period of six years: Year 123456 Returns Large- U.S. Company Treasury Bills Stocks - 15.19% 7.39% -26.62 8.04 37.33 5.97 24.03 5.57 - 7.36 5.50 6.67 7.79 a-1. Calculate the arithmetic average returns for large-company stocks and T-bills over this time period. (Do not round Intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) a-2. Calculate the standard deviation of the returns for large-company stocks and T-bills over this time period. (Do not round Intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Large-company stocks a-1. Arithmetic average return a-2. Standard deviation % T-bills % Calculate the observed risk premium in each year for the large-company stocks versus the T-bills. b-1. What was the arithmetic average risk premium over this period? (A negative answer should be Indicated by a minus sign. Do not round Intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b-2. What was the standard deviation of the risk premium over this period? (Do not round Intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b-1. Average risk premium % b-2. Risk premium standard deviation %
Expert Answer:
Posted Date:
Students also viewed these finance questions
-
Solve the right triangles with the given parts or state that there is not enough information to solve. Round off results according to Table 4.1. Refer to Fig. 4.37. B = 32.1, c = 238 Data from Table...
-
Mallett Manufacturing Co. expects to make 30,000 chairs during the 2011 accounting period. The company made 3,200 chairs in January. Materials and labor costs for January were $16,000 and $24,000,...
-
For companies, which of the following statements is true? (a) Capital losses may be carried forward and relieved against future trading profits. (b) Trading losses may be carried forward for relief...
-
For the following exercises, use the sample contact tracing graph to identify paths (Figure 13.12). 1. How many people have a path of length 2 from Jeffrey? 2. Find 2 paths between Kayla and Rohan....
-
Use the Rolling Hills data from Problem. In Problem, the 2015 income statement and comparative balance sheet of Rolling Hills, Inc. follow: Additionally, Rolling Hills purchased land of $ 23,600 by...
-
1. According to curent FASB guidelines, the functional currency and the reporting currency will be the same when the ___ operations are a direct extension of the parent. a. current b. outsourced c....
-
A vertical right circular cylindrical tank measures 28 ft high and 16 ft in diameter. It is full of liquid weighing 51.8 lb/ft. How much work does it take to pump the liquid to the level of the top...
-
How might the database administrator "comprehensively test" a new availability tool acquired for database users?
-
Both internal and external review assessments must consider a number of measures. What are they and why are they important?
-
Briefly explain the DA's and the DBA's responsibilities with respect to: a. Definition control b. Existence control c. Access control d. Update control e. Concurrency control f. Quality control
-
In the context of the strategic-grid model, why might we expect to see only a database-administration role in some organizations rather than both data-administration and database-administration roles?
-
Give three performance statistics that the database administrator might collect to improve performance within a database environment.
-
. Discuss the importance of procurement and supplier selection in the supply chain. 2. Discuss three (3) areas of importance in the procurement process. 3. Discuss three (3) areas of focus when...
-
Is that Yelp review real or fake? The article A Framework for Fake Review Detection in Online Consumer Electronics Retailers (Information Processing and Management 2019: 12341244) tested five...
-
Accounts receivable are typically collected within three months from the date of sale. Can they be considered cash equivalents? Explain.
-
What is a credit card discount? How does it affect amounts reported on the statement of earnings?
-
Using the allowance method, is bad debt expense recognized in (a) the period in which sales related to the uncollectible amounts were made or (b) the period in which the seller learns that the...
Study smarter with the SolutionInn App