Consider the following table for the total annual returns for a given period of time. Series Average return Standard Deviation Large-company stocks 12.3% 20.6% 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 What range of returns would you expect to see 68 percent of the time for large-company stocks? (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 95 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 %
Consider the following table for the total annual returns for a given period of time. Series Average return Standard Deviation Large-company stocks 12.3% 20.6% 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 What range of returns would you expect to see 68 percent of the time for large-company stocks? (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 95 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 %
Chapter7: Types And Costs Of Financial Capital
Section: Chapter Questions
Problem 15DQ
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Question
Transcribed Image Text:Consider the following table for the total annual returns for a given period of time.
Series
Average
return
Standard
Deviation
Large-company stocks
12.3%
20.6%
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
What range of returns would you expect to see 68 percent of the time for large-company stocks? (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 95 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
%
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