Question: Consider the following table for different assets for 1926 through 2020. Series Average return Standard Deviation Large-company stocks 12.2% 19.7% Small-company stocks 16.2 31.3 Long-term
Consider the following table for different assets for 1926 through 2020.
| Series | Average return | Standard Deviation |
|---|---|---|
| Large-company stocks | 12.2% | 19.7% |
| Small-company stocks | 16.2 | 31.3 |
| Long-term corporate bonds | 6.5 | 8.5 |
| Long-term government bonds | 6.1 | 9.8 |
| Intermediate-term government bonds | 5.3 | 5.6 |
| U.S. Treasury bills | 3.3 | 3.1 |
| Inflation | 2.9 | 4.0 |
What range of returns would you expect to see 68 percent of the time for long-term corporate bonds?
Note: A negative answer should be indicated by a minus sign. Enter your answers from lowest to highest. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.
What about 95 percent of the time?
Note: A negative answer should be indicated by a minus sign. Enter your answers from lowest to highest. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
