Over the past four years, large-company stocks and U.S. Treasury bills have produced the returns stated below. During this period, inflation averaged 2.9 percent. Given this information, the average real rate of return on large-company stocks was . for Treasury bills and the standard deviation for large-company stocks was for Treasury bills. percent as compare to percent as compared to Year1 year2 year3 year4 Percent return on large-company stocks 12 18 Percent return on U.S. Treasury bills 2 3 4 3.
Over the past four years, large-company stocks and U.S. Treasury bills have produced the returns stated below. During this period, inflation averaged 2.9 percent. Given this information, the average real rate of return on large-company stocks was . for Treasury bills and the standard deviation for large-company stocks was for Treasury bills. percent as compare to percent as compared to Year1 year2 year3 year4 Percent return on large-company stocks 12 18 Percent return on U.S. Treasury bills 2 3 4 3.
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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17.
Transcribed Image Text:Over the past four years, large-company stocks and U.S. Treasury bills have produced the returns
stated below. During this period, inflation averaged 2.9 percent. Given this information, the
average real rate of return on large-company stocks was.
percent as compare to percent
for Treasury bills and the standard deviation for large-company stocks was
as compared to
for Treasury bills.
Year1 year2 year3 year4
Percent return on large-company stocks
12
5
9
18
Percent return on U.S. Treasury bills
2
3
3
4
Select one:
O a. D. 7.87; 0.10; 5.48; 0.82
b. E. 7.87; 1.00; 6.24; 1.01
O c. C. 7.87; 0.10; 4.87; 0.67
O d. B. 11.00; .03; 5.48; 0.82
Ое. А. 11.00%; .03; 6.24;B 1.01
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