Answered step by step
Verified Expert Solution
Question
1 Approved Answer
37. . Dick Marcus tends to invest in large company stocks. Large company stocks have an average return of about 11% and a standard deviation
37. . Dick Marcus tends to invest in large company stocks. Large company stocks have an average return of about 11% and a standard deviation of about 20%. What is the range of returns large company stocks would have 68% of the time? From -9% to +31% b. From -29% to + 51% From -49 to + 71% d. Not enough information to do this. a. c. (1) (2) Year 1996 Return 8.90 26.00 (3) Average Return: 10.13 10.13 10.13 10.13 10.13 (4) Difference: (2) - (3) -1.23 15.87 11.87 2.87 -29.39 (5) Squared: (4) x (4) 1.51 251.92 140.94 8.25 863.65 1266.28 1997 1998 1999 2000 22.00 13.00 -19.26 50.64 Sum: Sum: 38. Using data from 1996-2000 above, what is the standard deviation of returns? 17.79% b 17.50% c. 15.91% d. 17.50% 39. In general, large company stocks: have done better over the past 87 years than small company stocks. b. have greater variance over the years than small company stocks. have greater risk premiums over 87 years than US government bonds. d all of the above. past 87 Soo 40. The sum of yearly returns divided by the number of years is known as: a. the standard deviation of returns. b. the risk premium c. the geometric return. d. the arithmetic return
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started