1291213123 Examine the Year-to-Year Total Return Data in the table belowCompute the annual Risk Premiums for Stocks and BondsCompute the average returns for stocks, bonds, and bills.Compute the standard deviation of returns for stocks, bonds, and billsGraph the Distribution of Total Returns for Stocks, Bonds, and BillsComplete ALL cells in Yellow4567891011 Year to Year Total ReturnsLargeLongCompany Government T-BillsStocksBonds141516171819ABD EG3. Risk and Return Calculations for Stocks, Bonds, and Bills2021223000 -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%Average24 ReturnX✓ fxStandard25 Deviation263.93%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%F13.31% 0.94%Risk PremiumsLarge LongCompany GovernmentStocks Bonds50.00%40.00%30.00%20.00%10.00%0.00%-10.00%-20.00%-30.00%-40.00%-50.00%HIJ3KLMInsert Column Chart for the Distribution of Returns Here(Label the Chart and include a Legend)Return Percentage for Large Company Stocks and Long GovernmentBondsStocks BondsNsophonengs5678O10P

Here, YearLarge Company StocksLong Government BondsT-…

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

Financial Reporting, Financial Statement Analysis and Valuation

8th Edition

ISBN:9781285190907

Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Chapter5: Risk Analysis

Section: Chapter Questions

Problem 13PC: Calculating and Interpreting Risk Ratios. Refer to the financial statement data for Hasbro in...

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ery//ua/69158/45467554/aHR0cHM6Ly9mMS5hcHAUZW t Activity: Mathematical Models and Investments Part C The table gives prices for gold and the New York Stock Exchange Composite Index, which is a fund that averages all the stocks listed on the exchange. The Bureau of Labor Statistics says the inflation rate between 1980 and 2010 was 174%, or about 3.5% a year. Using the data in the table, compare the volatility and returns of gold and the index fund. Finally, use the inflation rate to compare the real rates of return of the two investments. If a friend invested $1,000 in 1980, which investment would make her the most money? Gold (one ounce) NYSE Composite BIU X² X₂ Jan. 1980 $850 $682 15px Jan. 1990 $406 $1,937 Space used (includes formatting): 0/ 15000 O A 2 Jan. 2000 $287 $6,772 1 2 Jan. 2010 $1,104 $7,140 Return 30% 947% 田く 7 of 11 Apr 15 Annual Return 1% Part D Eliza has only one investment: $15,000 in stock shares of IFruit Computing. The stock's annual returns for the last 10 years…
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