he following table: es je stocks Il stocks

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
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11.10

Use the following table:
Average return
11.94 %
Series
Large stocks
Small stocks
16.64
Long-term corporate bonds
Long-term government bonds
U.S. Treasury bills
6.32
6.10
3.92
Inflation
3.10
a. Determine the return on a portfolio that was equally invested in large-company stocks
and long-term corporate bonds. (Do not round intermediate calculations and enter
your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
b. What was the return on a portfolio that was equally invested in small stocks and
Treasury bills? (Do not round intermediate calculations and enter your answer as a
percent rounded to 2 decimal places, e.g., 32.16.)
Transcribed Image Text:Use the following table: Average return 11.94 % Series Large stocks Small stocks 16.64 Long-term corporate bonds Long-term government bonds U.S. Treasury bills 6.32 6.10 3.92 Inflation 3.10 a. Determine the return on a portfolio that was equally invested in large-company stocks and long-term corporate bonds. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What was the return on a portfolio that was equally invested in small stocks and Treasury bills? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
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