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
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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 Next >
Expert Solution
Formula

Return on Portfolio = (Wx Average Return on S1)+ (W2 x Average Return S2)

 

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