You are choosing between these four investments and you want to be 95% certain that you do not lose more than 8.00% on your investment. Which investments could you choose? Small Stocks S&P 500 Corporate Bonds T-Bills Average return 18.37% 11.84% 6.47% 3.46% Standard Deviation of returns 38.79% 20.01% 6.98% 3.14% (Select the best choice below.) A. All of the investments. B. Corporate Bonds and S&P 500. C. Small Stocks and S&P 500. D. Corporate Bonds and T-Bills. E. T-Bills only.
You are choosing between these four investments and you want to be 95% certain that you do not lose more than 8.00% on your investment. Which investments could you choose? Small Stocks S&P 500 Corporate Bonds T-Bills Average return 18.37% 11.84% 6.47% 3.46% Standard Deviation of returns 38.79% 20.01% 6.98% 3.14% (Select the best choice below.) A. All of the investments. B. Corporate Bonds and S&P 500. C. Small Stocks and S&P 500. D. Corporate Bonds and T-Bills. E. T-Bills only.
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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You are choosing between these four investments and you want to be 95% certain that you do not lose more than
8.00%
on your investment. Which investments could you choose?|
|
Small Stocks
|
S&P 500
|
Corporate Bonds
|
T-Bills
|
|
Average return
|
18.37%
|
11.84%
|
6.47%
|
3.46%
|
|
Standard Deviation of returns
|
38.79%
|
20.01%
|
6.98%
|
3.14%
|
(Select the best choice below.)
All of the investments.
Corporate Bonds and S&P 500.
Small Stocks and S&P 500.
Corporate Bonds and T-Bills.
T-Bills only.
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