3. Risk and Return Calculations for Stocks, Bonds, and Bills Examine the Year-to-Year Total Return Data in the table below Compute the annual Risk Premiums for Stocks and Bonds Compute the average returns for stocks, bonds, and bills. Compute the standard deviation of returns for stocks, bonds, and bills Graph the Distribution of Total Returns for Stocks, Bonds, and Bills Complete ALL cells in Yellow Year to Year Total Returns Large Long Company Government T-Bills Stocks Bonds 3000 -1.89% 3001 -11.89% 3002 -22.10% 3003 38.68% 3004 10.88% 3005 14.91% 3006 5.80% 3007 15.49% 3008 -37.00% 3009 26.46% Average Return 3.93% Standard Deviation 21.58% 22.16% 5.98% 8.32% 5.33% 14.23% 4.61% 6.51% 4.03% 10.53% 3.43% 10.56% 4.30% 14.11% 3.97% 22.56% 5.52% 21.78% 3.24% -25.75% 3.15% 10.50% 4.36% 13.31% 0.94% Risk Premiums Large Long Company Government Stocks Bonds 50.00% 40.00% 30.00% 20.00% 10.00 % 0.00% -10.00% -20.00% -30.00% -40.00% -50.00% Return Percentage for Large Company Stocks and Long Government Bonds 1 Insert Column Chart for the Distribution of Returns Here (Label the Chart and include a Legend) 3 5 Stocks Bonds 6 7 8 10
3. Risk and Return Calculations for Stocks, Bonds, and Bills Examine the Year-to-Year Total Return Data in the table below Compute the annual Risk Premiums for Stocks and Bonds Compute the average returns for stocks, bonds, and bills. Compute the standard deviation of returns for stocks, bonds, and bills Graph the Distribution of Total Returns for Stocks, Bonds, and Bills Complete ALL cells in Yellow Year to Year Total Returns Large Long Company Government T-Bills Stocks Bonds 3000 -1.89% 3001 -11.89% 3002 -22.10% 3003 38.68% 3004 10.88% 3005 14.91% 3006 5.80% 3007 15.49% 3008 -37.00% 3009 26.46% Average Return 3.93% Standard Deviation 21.58% 22.16% 5.98% 8.32% 5.33% 14.23% 4.61% 6.51% 4.03% 10.53% 3.43% 10.56% 4.30% 14.11% 3.97% 22.56% 5.52% 21.78% 3.24% -25.75% 3.15% 10.50% 4.36% 13.31% 0.94% Risk Premiums Large Long Company Government Stocks Bonds 50.00% 40.00% 30.00% 20.00% 10.00 % 0.00% -10.00% -20.00% -30.00% -40.00% -50.00% Return Percentage for Large Company Stocks and Long Government Bonds 1 Insert Column Chart for the Distribution of Returns Here (Label the Chart and include a Legend) 3 5 Stocks Bonds 6 7 8 10
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:129
12
13
1
2
3 Examine the Year-to-Year Total Return Data in the table below
Compute the annual Risk Premiums for Stocks and Bonds
Compute the average returns for stocks, bonds, and bills.
Compute the standard deviation of returns for stocks, bonds, and bills
Graph the Distribution of Total Returns for Stocks, Bonds, and Bills
Complete ALL cells in Yellow
4
5
6
7
8
9
10
11 Year to Year Total Returns
Large
Long
Company Government T-Bills
Stocks
Bonds
14
15
16
17
18
19
A
B
D E
G
3. Risk and Return Calculations for Stocks, Bonds, and Bills
20
21
22
3000 -1.89%
3001 -11.89%
3002
-22.10%
3003 38.68%
3004 10.88%
3005 14.91%
3006 5.80%
3007 15.49%
3008 -37.00%
3009 26.46%
Average
24 Return
X✓ fx
Standard
25 Deviation
26
3.93%
21.58%
22.16% 5.98%
8.32% 5.33%
14.23%
4.61%
6.51% 4.03%
10.53% 3.43%
10.56% 4.30%
14.11% 3.97%
22.56%
21.78% 3.24%
5.52%
-25.75% 3.15%
10.50% 4.36%
F
13.31% 0.94%
Risk Premiums
Large Long
Company Government
Stocks Bonds
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
-10.00%
-20.00%
-30.00%
-40.00%
-50.00%
H
I
J
3
K
L
M
Insert Column Chart for the Distribution of Returns Here
(Label the Chart and include a Legend)
Return Percentage for Large Company Stocks and Long Government
Bonds
Stocks Bonds
N
sophonengs
5
6
7
8
O
10
P
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