Use the following table: Series Large stocks Small stocks Average return 11.88 % 16.58 6.29 Long-term corporate bonds Long-term government bonds U.S. Treasury bills Inflation 6.10 3.89 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.)
Use the following table: Series Large stocks Small stocks Average return 11.88 % 16.58 6.29 Long-term corporate bonds Long-term government bonds U.S. Treasury bills Inflation 6.10 3.89 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.)
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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![L Session 6
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6 Question
G What is the X
b Login | bar x
M (Alert] Suc x
A ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Flms.mb
eting - Z.
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Use the following table:
Series
Average return
11.88 %
16.58
Large stocks
Small stocks
Long-term corporate bonds
Long-term government bonds
U.S. Treasury bills
Inflation
6.29
6.10
3.89
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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Transcribed Image Text:L Session 6
L Dashboard x
6 Question
G What is the X
b Login | bar x
M (Alert] Suc x
A ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Flms.mb
eting - Z.
M MKT 100 (Section 2.
H QuickLaunchSsO :
- 11 Homework
Saved
Help
Use the following table:
Series
Average return
11.88 %
16.58
Large stocks
Small stocks
Long-term corporate bonds
Long-term government bonds
U.S. Treasury bills
Inflation
6.29
6.10
3.89
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.)
< Prev
10 of 30
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Expert Solution
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Formula
Return on Portfolio = (W1 x Average Return on S1)+ (W2 x Average Return S2)
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