Annual and Average Returns for Stocks, Bonds, and T-Bills, 1950 to 2017 1950 to 2017 Average 1950 to 1959 1960 to 1969 1970 to 1979 1980 to 1989 1990 to 1999 2000 to 2009 Average Average Average Average Average Average 2010 Annual Return 2011 Annual Return 2012 Annual Return 2013 Annual Return 2014 Annual Return 2015 Annual Return. 2016 Annual Return 2017 Annual Return 2010 to 2017 Average Stocks 12.7% 20.9 8.7 7.5 18.2 19.0 0.9 15.1 2.1 16.0 32.4 13.7 1.4 12.0 21.8 14.3 Portfolio Return Long-Term Treasury Bonds 6.6% 0.0 1.6 5.7 13.5 9.5 8.0 9.4 29.9 3.6 -12.7 25.1 -1.2 1.2 8.4 8.0 T-bills 4.30% 2.00 4.00 6.30 8.90 4.90 2.70 0.01 0.02 0.02 0.07 0.05 0.21 0.51 1.39 0.29 You have a portfolio with an asset allocation of 47 percent stocks, 30 percent long-term Treasury bonds, and 23 percent T-bills. Use these weights and the returns given in the above table to compute the return of the portfolio in the year 2010 and each year since. Then compute the average annual return and standard deviation of the portfolio. (Do not round intermediate calculations. Round your answers to 2 decimal places.)
Q: Tricki Corp stock sells for $45 rights-on, and the subscription price is $35. Ten rights are…
A: To ascertain Tricki Corp's price upon commencing ex-rights trading, it's essential to comprehend how…
Q: Laura wants to buy a delivery truck. The truck costs $124,000 , and will allow her to increase her…
A: The term "net present value" is used in the capital budgeting concept, this technique is used for…
Q: It will take n years, t months and u days to pay off a $1000 loan if $100 is paid a the end of every…
A: Loans are paid by equal periodic payments that carry the payment for interest and loan.
Q: Suppose you want to have $9,000 saved in 6 years. If you can earn 4.6% on your funds, how much would…
A: The given problem can be solved using PV function in excel.PV function computes present worth for…
Q: The table shows closing costs for a purchase of a $276,000 house. requiring a 20% down payment. Find…
A: DownpaymentThe upfront cash payment made by the buyer for a home or other major purchase is known as…
Q: Kunkel Company is considering the purchase of a $29,000 machine that would reduce operating costs by…
A: Net Present Value-Net present value (NPV) is a tool used to calculate the current value of…
Q: s quarterback just signed a $10.8 million contract providing $2.7 million a year for 4 yes signed a…
A: Net present value can be calculated as difference between present value of cash flow and initial…
Q: Shares of the Pacific Electric Company (PEC) have an estimated Beta of 1.10. PEC funds its assets…
A: A company's average after-tax cost of capital from all sources, including common stock, preferred…
Q: A BCE bond has 11 years until maturity and a coupon rate of 6.9% payable annually, and sells for…
A: face value = $1000n= 11 yearscoupon rate = 6.9%price =$1070
Q: Pitman Hospital received interest payments of $6,000 during 2022. Its balance sheets reported…
A: To determine the amount of interest income reported in the hospital's 2022 statement of operations,…
Q: (Expected rate of return and risk) Syndex, Inc is considering an investment in one of two common…
A: Risk and return are essential financial principles. The term “risk” refers to the uncertainty and…
Q: You decided to save every month for the next ten years a so that you can make a down payment for a…
A: Monthly payments are easy to deposit but over the time grow to large amount due to compounding of…
Q: Question 20 A pension fund has an average duration of its liabilities equal to 15 years. The fund is…
A: Perpetuity can be referred to as the series of cash flows that are never-ending. The duration of the…
Q: with many TA's working from the same pool of candidates, communication within the team is key. How…
A: Avoiding the issue of multiple TAs contacting the same candidate for the same position is crucial to…
Q: Annual and Average Returns for Stocks, Bonds, and T-Bills, 1950 to 2017 1950 to 2017 Average 1950 to…
A: The expected average return on the portfolio can be found by looking at the portfolio for each year…
Q: Should a country’s government assist private businesses in the conduct of international trade…
A: Yes , a country’s government can assist private businesses in the conduct of international trade by…
Q: Corporation ABC invested in a project that will generate $60,000 annual after-tax cash flow in years…
A: Net Present Value is also known as Npv. It is a capital budgeting tehcnique which helps in decision…
Q: What is the stock's expected return? Do not round intermediate calculations. Round your answer to…
A: Risk and return are essential financial principles. The term “risk” refers to the uncertainty and…
Q: Yan Yan Corporation has a $4,000 par value bond outstanding with a coupon rate of 4.1 percent paid…
A: or the face value discounted appropriately.Given face value = $4000,years remaining to maturity = 15…
Q: You deposit 6600 in an account with an annual interest rate of 15%. How long will it take for your…
A: In compounding there is interest on interest including the principal amount also and due compounding…
Q: parents shop around and a different bank is willing to lend them a $750,000 30-year mortgage with…
A: Mortgage loans are secured loans and very easy to get and pay with equal monthly payments.
Q: Precious metal mining has $17 million in sales, its ROE is 17%, and its total assets turnover is…
A: Sales of Precious metal mining$17,000,000Total asset turnover3.2Proportion of common equity50%Return…
Q: 5. you have a choice between the following two identical properties: property A is priced at…
A: Given:
Q: 1)Using an interest rate of $4.5% compounded monthly, how much does a company need to deposit now,…
A: An annuity is a method of fulfilling a financial goal by regular savings or withdrawals for a…
Q: The amount of markup on a store item is $11. Find the cost to the store if the markup is 20%.
A: To find the cost to the store when the markup is 20% and the markup amount is $11, we can set up a…
Q: The expected pretax return on three stocks is divided between dividends and capital gains in the…
A:
Q: a. Many years ago, Casties in the Sand Incorporated issued bonds at face value at a yield to…
A: A bond can be explained as an investment instrument that offers periodic payments to the holder for…
Q: Suppose the annualized LIBOR3 is 3.51% and the annualized LIBOR6 is 4.84%. What is the forward…
A: As per the given information:the forward rate for a LIBOR3 (annualized) deposit is to be placed in…
Q: A share of stock is now selling for $95. It will pay a dividend of $5 per share at the end of the…
A: To find out the expected selling price of the stock at the end of the year, we need to find out the…
Q: Donner United has total owners' equity of $18,800. The firm has current assets of $23,500, current…
A: Given:Total Owners' Equity = $18,800 Total Assets = $36,400Current Liabilities = $12,200
Q: What is the ROE for a firm with a times interest earned ratio of 2, a tax liability of $1 million,…
A: Variables in the question:Times interest earned ratio=2Tax liability=$1 millionInterest…
Q: Donna just graduated from college. Since she is starting her own business, it's time to upgrade from…
A: The simple payback period refers to the time it takes for the cash flows of the project to cover its…
Q: The corner shop is considering a new four year expansion project that requires an initial fixed…
A: Fixed Assets = fa = 210,000Life of Fixed Assets = l = 4Sales = s = 48,000Cost = c = 31,000tax Rate…
Q: A small business owner visits his bank to ask for a loan. The owner states that he can repay a loan…
A: Here,Monthly Paymeny for first three years is $1,500Monthky Payment for next two years is $500APR is…
Q: Troy graduated in civil engineering from Concordia two years ago and decided to work in the remote…
A: Tax Liability = $58,232.74Gross Income = $135,000
Q: Crossfade Corp. has a bond with a par value of $2,000 that sells for $1,956.84. The bond has a…
A: The yield to maturity of the bond is the expected return of an investor of the bond which is…
Q: The table shows closing costs for a purchase of a $300,000 house requiring a 20% down payment. Find…
A: DownpaymentThe upfront cash payment made by the buyer for a home or other major purchase is known as…
Q: The quotes listed are indirect quotes of the $. A direct quote of the $ per € would be $ The forward…
A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: firm has a cre rating A. You notice that the credit spread for five-year maturity debt is 82 basis…
A: Yield of bond is the required rate of the bond and that depends on the credit rate and risk involved…
Q: Pearl Limited is considering upgrading its plant to expand it client base. The financial details of…
A: NPV stands for "Net Present Value." It is a financial metric used to evaluate the profitability of…
Q: The probability distribution of returns for the two stocks X and Y are as follows: Probability 0.1…
A:
Q: 5. In one year, Bold Betties Inc. will pay a $2 per share dividend and it is expected to grow by 5…
A: The dividend discount model suggests that the intrinsic price of the share is the present value of…
Q: You Save Bank has aunique account. If you deposit $9,000 today, the bank will pay you an annual…
A: FV = A*(1+r)nwhereFV = future valueA = amount investedr = interest raten =time period
Q: The price of Walmart stock is currently $48.26 and you decide to buy 160 shares on margin. The…
A: To calculate how much you must deposit to meet your margin call after 8 months with a stock price of…
Q: An investor is considering the purchase of a(n) 6.500%, 15-year corporate bond that's being priced…
A: Price of bond is the sum of the present value of coupon payments plus present value of the par value…
Q: 11 years ago the Singleton Company issued 30-year bonds with a 12.5% annual coupon rate at their…
A:
Q: For each of the following, compute the present value: Note: Do not round intermediate calculations…
A: Present value is the equivalent value of money today of the future money that is going to received…
Q: What is the seven-year present value?
A: We can determine the PV of the profit using the formula below:Profit can be determined with the…
Q: You want a seat on the board of directors of Four Keys, Incorporated. The company has 235,000 shares…
A: Straight voting is a type of voting in which the individual needs to have more than 50% of shares in…
Q: A mortgage bond issued by Automation Engineering is for sale for $8,800. The bond has a face value…
A: Yield To maturity: Simply means the rate of return the investors can expect on a bond if held till…
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images
- Annual and Average Returns for Stocks, Bonds, and T-Bills, 1950 to 2017 1950 to 2017 Average 1950 to 1959 Average Average Average Average Average Average: Annual Return 2010 2011 Annual Return 2012 Annual Return 2013 Annual Return 2014 Annual Return 2015 Annual Return. 2016 Annual Return. 2017 Annual Return 2010 to 2017 Average 1960 to 1969 1970 to 1979 1980 to 1989 1990 to 1999 2000 to 2009 12.7% 20.9 8.7 7.5 18.2 19.0 0.9 15.1 2.1 16.0 32.4 13.7 1.4 12.0 21.8 14.3 Stocks Long-Term Treasury Bonds 6.6% 0.0 1.6 5.7 13.5 9.5 8.0 9.4 29.9 3.6 -12.7 25.1 -1.2 1.2 8.4 8.0 4.30% 2.00 4.00 6.30 8.90 4.90 2,70 0.01 0.02 0.02 0.07 0.05 0.21 0.51 1.39 0.29 T-bills You have a portfolio with an asset allocation of 60 percent stocks, 30 percent long-term Treasury bonds, and 10 percent T-bills. Use these weights and the returns given in the above table to compute the return of the portfolio in the year 2010 and each year since. Then compute the average annual return and standard deviation of the…Annual and Average Returns for Stocks, Bonds, and T-Bills, 1950 to 2017 Long-Term Treasury 1950 to 2019 Average 1950 to 1959 Average Average 1968 to 1969 1970 to 1979 Average 1988 to 1989 Average 1990 to 1999 Average 2000 to 2009 Average 2010 Annual Return 2011 Annual Return 2012 Annual Return 2013 Annual Return 2014 Annual Return 2015 Annual Return 2016 Annual Return 2017 Annual Return 2018 Annual Return 2019 Annual Return 2010 to 2019 Average 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Average Standard deviation Portfolio Return %6 %6 %6 % %6 % %6 % %6 % Stocks 12.7% 20.9 8.7 7.5 18.2 19.0 0.9 15.1 % 2.1 16.0 32.4 13.7 1.4 12.0 21.8 -4.4 31.5 14.2 Bonds You have a portfolio with an asset allocation of 50 percent stocks, 32 percent long-term Treasury bonds, and 18 percent T-bills. Use these weights and the returns given in the above table to compute the return of the portfolio in the year 2010 and each year since. Then compute the average annual return and standard deviation of…Annual and Average Returns for Stocks, Bonds, and T-Bills, 1950 to 2017 1950 to 2017 Average 1950 to 1959 1960 to 1969 1970 to 1979 Average Average Average 1980 to 1989 Average 1990 to 1999 Average 2000 to 2009 Average 2010 Annual Return 2011 Annual Return 2012 Annual Return 2013 Annual Return 2014 Annual Return 2015 Annual Return 2016 Annual Return 2017 Annual Return 2010 to 2017 Average Stocks 12.7% 20.9 8.7 7.5 18.2 19.0 0.9 15.1 2.1 16.0 32.4 13.7 1.4 12.0 21.8 14.3 Long-Term Treasury Bonds 6.6% 0.0 1.6 5.7 13.5 9.5 8.0 9.4 29.9 3.6 -12.7 25.1 -1.2 1.2 8.4 8.0 T-bills 4.30% 2.00 4.00 6.30 8.90 4.90 2.70 0.01 0.02 0.02 0.07 0.05 0.21 0.51 1.39 0.29 You have a portfolio with an asset allocation of 50 percent stocks, 32 percent long-term Treasury bonds, and 18 percent T-bills. Use these weights and the returns given in the above table to compute the return of the portfolio in the year 2010 and each year since. Then compute the average annual return and standard deviation of the…
- es Annual and Average Returns for Stocks, Bonds, and T-Bills, 1950 to 2017 1950 to 2017 Average 1950 to 1959 1960 to 1969 1970 to 1979 Average Average Average Average 1980 to 1989 1990 to 1999 Average Average 2000 to 2009 Annual Return Annual Return 2010 2011 2012 Annual Return 2013 Annual Return 2014 Annual Return 2015 Annual Return 2016 Annual Return 2017 Annual Return 2010 to 2017 Average Stocks 12.7% 20.9 8.7 7.5 18.2 19.0 0.9 15.1 2.1 16.0 32.4 13.7 1.4 12.0 21.8 14.3 Long-Term Treasury Bonds 6.6% 0.0 1.6 5.7 13.5 9.5 8.0 9.4 29.9 3.6 -12.7 25.1 -1.2 1.2 8.4 8.0 T-bills 4.30% 2.00 4.00 6.30 8.90 4.90 2.70 0.01 0.02 0.02 0.07 0.05 0.21 0.51 1.39 0.29 You have a portfolio with an asset allocation of 50 percent stocks, 32 percent long-term Treasury bonds, and 18 percent T-bills. Use these weights and the returns given in the above table to compute the return of the portfolio in the year 2010 and each year since. Then compute the average annual return and standard deviation of the…Annual and Average Returns for Stocks, Bonds, and T-Bills, 1950 to 2019 Long-Term Stocks Treasury Bonds 12.7% 20.9 8.7 1950 to 2019 Average 1950 to 1959 Average 1960 to 1969 Average 1970 to 1979 Average 1988 to 1989 Average 1990 to 1999 Average 2000 to 2009 Average. 2010 Annual Return. 2011 Annual Return 2012 Annual Return 2013 Annual Return 2014 Annual Return. 2015 Annual Returni 2016 Annual Return. 2017 Annual Return. 2018 Annual Return. 2019 Annual Return 2010 to 2019 Average 7.5 18.2 19.0 0.9 15.1 2.1 16.0 32.4 13.7 1.4 12.0 21.8 -4.4 31.5 14.2 6.6% 0.0 1.6 5.7 13.5 9.5 8.0 9.4 29.9 3.6 -12.7 25.1 -1.2 1.2 8.4 -1.8 14.8 7.7 T-bills 4.2% 2.0 4.0 6.3 8.9 4.9 2.7 0.01 0.02 0.02 0.07 0.05 0.21 0.51 1.39 1.94 2.06 0.63 You have a portfolio with an asset allocation of 62 percent stocks, 30 percent long-term Treasury bonds, and 8 percent T-bills. Use these weights and the returns given in the above table to compute the return of the portfolio in the year 2010 and each year since. Then…Annual and Average Returns for Stocks, Bonds, and T-Bills, 1950 to 2019 1950 to 2019 Average 1950 to 1959 Average 1960 to 1969 Average 1970 to 1979 1980 to 1989 1990 to 1999 2000 to 2009 Average Average 2010 Annual Return 2011 Annual Return. 2012 Annual Return 2013 Annual Return Annual Return 2014 2015 Annual Return 916 Annual Return 2017 Annual Return. 2018 Annual Return 2019 Annual Return 2010 to 2019 Average Average Average 2010 2011 2012 2013 2014 2015 Portfolio Return Stocks 12.7% 20.9 8.7 7.5 18.2 19.0 0.9 % % % % % 15.1 2.1 04 16.0 32.4 13.7 1.4 12.0 21.8 -4.4 31.5 14.2 Long-Term Treasury Bonds 6.6% 0.0 1.6 5.7 13.5 9.5 You have a portfolio with an asset allocation of 45 percent stocks, 30 percent long-term Treasury bonds, and 25 percent T-bills. Use these weights and the returns given in the above table to compute the return of the portfolio in the year 2010 and each year since. Then compute the average annual return and standard deviation of the portfolio. Note: Do not round…
- 1 1 bok ences Annual and Average Returns for Stocks, Bonds, and T-Bills, 1950 to 2017 1960 to 1969 Average Average Average Average Average 1970 to 1979 1980 to 1989 Average Average 1990 to 1999 2000 to 2009 2010 Annual Return 2011 Annual Return 2012 Annual Return 2013 Annual Return 2014 Annual Return 2015 2016 2017 2010 to 2017 Annual Return Annual Return Annual Return Average 1950 to 2017 1950 to 1959 2010 2011 2012 2013 2014 2015 2016 2017 Average Standard deviation Portfolio Return % % % % % % % % % Stocks 12.7% 20.9 8.7 7.5 18.2 19.0 % 0.9 15.1 2.1 16.0 32.4 13.7 1.4 12.0 21.8 14.3 Long-Term Treasury Bonds You have a portfolio with an asset allocation of 54 percent stocks, 40 percent long-term Treasury bonds, and 6 percent T-bills. Use these weights and the returns given in the above table to compute the return of the portfolio in the year 2010 and each year since. Then compute the average annual return and standard deviation of the portfolio. (Do not round intermediate…Average Average Average Average Average Average Average 1950 to 2017 1950 to 1959 1960 to 1969 1970 to 1979 1980 to 1989 1990 to 1999 2000 to 2009 2010 Annual Return 2011 Annual Return 2012 Annual Return 2013 Annual Return 2014 Annual Return 2015 Annual Return 2016 Annual Return 2017 Annual Return 2010 to 2017 Average 2010 2011 2012 2013 2014 Portfolio Return % % % Stocks 12.7% 20.9 8.7 7.5 18.2 19.0 0.9 15.1 2.1 16.0 32.4 13.7 1.4 12.0 21.8 14.3 % Long-Term Treasury Bonds 6.6% 0.0 1.6 5.7 13.5 You have a portfolio with an asset allocation of 40 percent stocks, 36 percent long-term Treasury bonds, and 24 percent T-bills. Use these weights and the returns given in the above table to compute the return of the portfolio in the year 2010 and each year since. Then compute the average annual return and standard deviation of the portfolio. (Do not round intermediate calculations. Round your answers to 2 decimal places.) 9.5 8.0 9.4 29.9 3.6 -12.7 25.1 -1.2 1.2 8.4 8.0 T-bills 4.30% 2.00 4.00…Annual and Average Returns for Stocks, Bonds, and T-Bills, 1950 to 2019 Stocks Long - Term Treasury Bonds T-bills 1950 to 2019 Average 12.7% 6.6% 4.2% 1950 to 1959 Average20.9 0.0 2.0 1960 to 1969 Average 8.7 1.6 4.0 1970 to 1979 Average 7.5 5.7 6.3 1980 to 1989 Average18.2 13.5 8.9 1990 to 1999 Average 19.0 9.5 4.9 2000 to 2009 Average 0.9 8.0 2.7 2010 Annual Return15.1 9.4 0.01 2011 Annual Return 2.1 29.9 0.02 2012 Annual Return 16.0 3.6 0.02 2013 Annual Return32.4-12.7 0.07 2014 Annual Return 13.7 25.10.05 2015 Annual Return 1.4-1.2 0.21 2016 AnnualReturn 12.0 1.2 0.51 2017 Annual Return 21.8 8.4 1.39 2018 Annual Return -4.4 1.8 1.94 2019 Annual Return 31.5 14.8 2.06 2010 to 2019 Average 14.2 7.7 0.63 You have a portfolio with an asset allocation of 62 percent stocks, 30 percent long-term Treasury bonds, and 8 percent T-bills. Use these weights and the returns given in the above table to compute the return of the portfolio in the year 2010 and each year since. Then compute the…
- Annual and Average Returns for Stocks, Bonds, and T-Bills, 1950 to 2017 Stocks Long-Term Treasury Bonds T-bills 1950 to 2017 Average 12.7 % 6.6 % 4.30 % 1950 to 1959 Average 20.9 0.0 2.00 1960 to 1969 Average 8.7 1.6 4.00 1970 to 1979 Average 7.5 5.7 6.30 1980 to 1989 Average 18.2 13.5 8.90 1990 to 1999 Average 19.0 9.5 4.90 2000 to 2009 Average 0.9 8.0 2.70 2010 Annual Return 15.1 9.4 0.01 2011 Annual Return 2.1 29.9 0.02 2012 Annual Return 16.0 3.6 0.02 2013 Annual Return 32.4 −12.7 0.07 2014 Annual Return 13.7 25.1 0.05 2015 Annual Return 1.4 −1.2 0.21 2016 Annual Return 12.0 1.2 0.51 2017 Annual Return 21.8 8.4 1.39 2010 to 2017 Average 14.3 8.0 0.29 You have a portfolio with an asset allocation of 50 percent stocks, 38 percent long-term Treasury bonds, and 12 percent T-bills. Use these weights and the returns given in the…Intro You've collected the following historical rates of return for stocks A and B: Year (t) FA,t FB,t 2016 0.02 0.01 2015 0.08 0.05 2014 0.17 0.07Stocks C and F have the following historical returns:Year return (HPY) of C return (HPY) of F2016 −18.00% −14.50%2017 33.00% 21.80%2018 15.00 % 30.50%2019 −0.50% −7.60%2020 27.00% 26.30%Required i. Calculate the geometric rate of return for each stock during the 5-year period. ii. Calculate the standard deviation of returns for each stock. iii. Calculate the coefficient of variation for each stock. iv. If you are a risk-averse investor then, assuming these are your only choices, discusswhether you would prefer to hold Stock C or Stock F.