Question: Practice Assignment #7 18. The historical data shows that the following class of securities had the highest risk (measured by the standard deviation of returns):

Practice Assignment #7

18. The historical data shows that the following class of securities had the highest risk (measured by the standard deviation of returns): a. Large company stocks e. Small company stocks b.U.S. Treasury bills C. Long term corporate bonds d. Long term government bonds 19. Given the following data: YEAR STOCK A RETURNS 201a 201b 2010 2010 30% 20% -10% 24% Calculate the average of returns of Stock A a. 10% b. 15% c. 16% d. 25% e. none of the given ones 20. [Using data from the previous question (Question-19)] Calculate the standard deviation of returns of Stock A: (approximately) Spring 2020 21P b. 15.4% a. 17.8% c. 6.25% d. 5% e. none of the given ones 18. The historical data shows that the following class of securities had the highest risk (measured by the standard deviation of returns): a. Large company stocks e. Small company stocks b.U.S. Treasury bills C. Long term corporate bonds d. Long term government bonds 19. Given the following data: YEAR STOCK A RETURNS 201a 201b 2010 2010 30% 20% -10% 24% Calculate the average of returns of Stock A a. 10% b. 15% c. 16% d. 25% e. none of the given ones 20. [Using data from the previous question (Question-19)] Calculate the standard deviation of returns of Stock A: (approximately) Spring 2020 21P b. 15.4% a. 17.8% c. 6.25% d. 5% e. none of the given ones

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