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37. . Dick Marcus tends to invest in large company stocks. Large company stocks have an average return of about 11% and a standard deviation

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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

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