What is the likely frequency of the data (daily, monthly, yearly)? Compare to historical historical data in the picture to justify the answer.

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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What is the likely frequency of the data (daily, monthly, yearly)? Compare to historical historical data in the picture to justify the answer.

The last ten observations of the holding period returns (HPR) of stock XYZ are given in the
following table:
Period
1234567
7
8
9
10
XYZ
-3%
2%
6%
-5%
-10%
10%
3%
7%
0%
-3%
Transcribed Image Text:The last ten observations of the holding period returns (HPR) of stock XYZ are given in the following table: Period 1234567 7 8 9 10 XYZ -3% 2% 6% -5% -10% 10% 3% 7% 0% -3%
TABLE 4.4
Australia
Belgium
Canada
Denmark
Finland
France
Germany
Ireland
HISTORICAL RETURNS FOR MAJOR ASSET CLASSES (1900–2017)
Average Annual Rates of Return
Long-Term
Government Bonds
Italy
Japan
Netherlands
New Zealand
Norway
South Africa
Spain
Sweden
Switzerland
Stocks
12.2%
10.2%
10.2%
11.4%
16.4%
13.0%
13.4%
11.0%
14.2%
14.5%
10.3%
11.8%
11.0%
14.7%
11.5%
11.5%
8.4%
11.2%
11.5%
9.6%
6.1%
5.9%
Short-Term
Government Bills
4.5%
4.7%
4.5%
5.9%
6.5%
4.7%
3.4%
4.8%
4.3%
4.7%
3.4%
5.4%
4.8%
6.1%
5.9%
5.2%
2.9%
4.8%
3.8%
3.8%
5.6%
7.5%
7.4%
7.4%
5.3%
6.5%
7.3%
6.7%
4.9%
6.2%
5.9%
7.3%
8.0%
6.6%
4.7%
United Kingdom
6.2%
United States
5.3%
World
5.3%
(Source: Data from Credit Suisse Global Investment Returns Yearbook 2018.)
Inflation
3.8%
6.0%
3.1%
3.9%
8.6%
7.4%
5.3%
4.3%
10.3%
9.8%
2.9%
3.7%
3.9%
5.2%
5.7%
3.5%
2.3%
3.9%
3.0%
3.0%
Transcribed Image Text:TABLE 4.4 Australia Belgium Canada Denmark Finland France Germany Ireland HISTORICAL RETURNS FOR MAJOR ASSET CLASSES (1900–2017) Average Annual Rates of Return Long-Term Government Bonds Italy Japan Netherlands New Zealand Norway South Africa Spain Sweden Switzerland Stocks 12.2% 10.2% 10.2% 11.4% 16.4% 13.0% 13.4% 11.0% 14.2% 14.5% 10.3% 11.8% 11.0% 14.7% 11.5% 11.5% 8.4% 11.2% 11.5% 9.6% 6.1% 5.9% Short-Term Government Bills 4.5% 4.7% 4.5% 5.9% 6.5% 4.7% 3.4% 4.8% 4.3% 4.7% 3.4% 5.4% 4.8% 6.1% 5.9% 5.2% 2.9% 4.8% 3.8% 3.8% 5.6% 7.5% 7.4% 7.4% 5.3% 6.5% 7.3% 6.7% 4.9% 6.2% 5.9% 7.3% 8.0% 6.6% 4.7% United Kingdom 6.2% United States 5.3% World 5.3% (Source: Data from Credit Suisse Global Investment Returns Yearbook 2018.) Inflation 3.8% 6.0% 3.1% 3.9% 8.6% 7.4% 5.3% 4.3% 10.3% 9.8% 2.9% 3.7% 3.9% 5.2% 5.7% 3.5% 2.3% 3.9% 3.0% 3.0%
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