Consider the following average annual returns:Average Return23.5%13.1%7.5%6.8%4%InvestmentSmall StocksS&P 500Corporate BondsTreasure BondsTreasury BillsWhat is the excess return for corporate bonds?O A. 1.8%OB. 0%OC. 7%OD. 3.5%

The difference between the average return of corporate bonds and the average return of treasury…

Consider the following average annual returns: Average Return Investment Small Stocks 23.5% S&P 500 13.1% 7.5% Corporate Bonds Treasure Bonds Treasury Bills What is the excess return for corporate bonds? 6.8% 4%

Consider the following average annual returns: Average Return Investment Small Stocks 23.5% S&P 500 13.1% 7.5% Corporate Bonds Treasure Bonds Treasury Bills What is the excess return for corporate bonds? 6.8% 4%

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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Question

Consider the following average annual returns:
Average Return
23.5%
13.1%
7.5%
6.8%
4%
Investment
Small Stocks
S&P 500
Corporate Bonds
Treasure Bonds
Treasury Bills
What is the excess return for corporate bonds?
O A. 1.8%
OB. 0%
OC. 7%
OD. 3.5%

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