Question

Consider the following table for the total annual returns for a given period of time. Series...

Consider the following table for the total annual returns for a given period of time. Series Average return Standard Deviation Large-company stocks 11.7 % 20.6 % Small-company stocks 16.4 33.0 Long-term corporate bonds 5.1 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 What range of returns would you expect to see 95 percent of the time for long-term corporate bonds? (A negative answer 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 and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Expected range of returns % to %? What about 99 percent of the time? (A negative answer 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 and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Expected range of returns % to %?

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Consider the following table for the total annual returns for a given period of time.   Series...
Consider the following table for the total annual returns for a given period of time.   Series Average return Standard Deviation   Large-company stocks 10.8 % 21.1 %   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...
Problem 10-18 Return Distributions [LO 3] Consider the following table for different assets for 1926 through...
Problem 10-18 Return Distributions [LO 3] 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 large-company stocks? (Negative amount should be indicated by...
1. Over a particular period, an asset had an average return of 6.9 percent and a...
1. Over a particular period, an asset had an average return of 6.9 percent and a standard deviation of 9.9 percent. What range of returns would you expect to see 95 percent of the time for this asset? (A negative answer 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 and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)...
Suppose the returns on an asset are normally distributed. The historical average annual return for the...
Suppose the returns on an asset are normally distributed. The historical average annual return for the asset was 5.9 percent and the standard deviation was 10.5 percent. a. What range of returns would you expect to see 95 percent of the time? (A negative answer should be indicated by a minus sign. Enter your answers for the range from lowest to highest. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g.,...
Use the following table: Series Average return Large stocks 11.96 % Small stocks 16.66 Long-term corporate...
Use the following table: Series Average return Large stocks 11.96 % Small stocks 16.66 Long-term corporate bonds 6.33 Long-term government bonds 6.10 U.S. Treasury bills 3.93 Inflation 3.10 a. Determine the return on a portfolio that was equally invested in large-company stocks and long-term corporate bonds. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What was the return on a portfolio that was equally invested in small stocks...
Use the following table: Series Average return Large stocks 12.04 % Small stocks 16.74 Long-term corporate...
Use the following table: Series Average return Large stocks 12.04 % Small stocks 16.74 Long-term corporate bonds 6.37 Long-term government bonds 6.10 U.S. Treasury bills 3.97 Inflation 3.10 a. Determine the return on a portfolio that was equally invested in large-company stocks and long-term corporate bonds. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Portfolio Return             % b. What was the return on a portfolio that was equally invested...
Problem 10-8 Risk Premiums [LO 2] Consider the following table for a period of six years:...
Problem 10-8 Risk Premiums [LO 2] Consider the following table for a period of six years: Returns Year Large-Company Stocks U.S. Treasury Bills 1 –15.99 % 7.55 % 2 –26.86 8.12 3 37.49 6.13 4 24.19 6.37 5 –7.68 5.58 6 6.83 8.03    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.) Arithmetic average returns...
You are given the following information:      State of Economy Return on Stock A Return on...
You are given the following information:      State of Economy Return on Stock A Return on Stock B   Bear .111 -.054                Normal .106 .157                Bull .082 .242                 Assume each state of the economy is equally likely to happen.    Calculate the expected return of each of the following stocks. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)    Expected return   Stock A %   Stock B...
You are given the following information: State of Economy Return on Stock A Return on Stock...
You are given the following information: State of Economy Return on Stock A Return on Stock B Bear .119 -.062 Normal .098 .165 Bull .090 .250 Assume each state of the economy is equally likely to happen. Calculate the expected return of each stock. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Expected return Stock A ______% Stock B ______%    Calculate the standard deviation of each stock. (Do not...
Problem 10-28 Using Probability Distributions [LO 3] Suppose the returns on long-term corporate bonds and T-bills...
Problem 10-28 Using Probability Distributions [LO 3] Suppose the returns on long-term corporate bonds and T-bills are normally distributed. Assume for a certain time period, long-term corporate bonds had an average return of 5.8% and a standard deviation of 8.9%. For the same period, T-bills had an average return of 4.3% and a standard deviation of 3.1%. Use the NORMDIST function in Excel® to answer the following questions: a. What is the probability that in any given year, the return...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT