Question: Consider the following table for different assets for 1926 through 2011. Series Average return Standard Deviation Large-company stocks 11.8 % 20.3 % Small-company stocks 16.5

Consider the following table for different assets for 1926 through 2011.

Series

Average return

Standard Deviation
Large-company stocks 11.8 % 20.3 %
Small-company stocks 16.5 32.5
Long-term corporate bonds 6.4 8.4
Long-term government bonds 6.1 9.8
Intermediate-term government bonds 5.5 5.7
U.S. Treasury bills 3.6 3.1
Inflation 3.1 4.2

Requirement 1:

What range of returns would you expect to see 68 percent of the time for long-term corporate bonds? (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 %

Requirement 2:

What about 95 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 %

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