Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A . Average rate of return: B . Average risk premium: C . Standard deviation of returns: Use the data in the tables below to

A. Average rate of return:
B. Average risk premium:
C.Standard deviation of returns:
image text in transcribed

Use the data in the tables below to answer the following questions: Average rates of return on Treasury bills, government bonds, and common stocks, 19002020. Average Annual Rate of Return Portfolio Treasury bills Treasury bonds Common stocks Standard deviation of returns, Portfolio Treasury bills (96) 3.7 5.4 11.5 1900-2020. Average Premium (Extra return versus Treasury bills) 1.7 7.8 Longterm government bonds Common stocks Standa rd Deviation (%) 2.8 8.9 19.5 a. What was the average rate of return on large U.S. common stocks from 1900 to 2020? b. What was the average risk premium on large stocks? c. What was the standard deviation of returns on common stocks? Note: Enter your answer as a percent rounded to 1 decimal place. Answer is complete but not entirely correct.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Health Care Finance And The Mechanics Of Insurance And Reimbursement

Authors: Michael K. Harrington

2nd Edition

1284169030, 978-1284169034

More Books

Students also viewed these Finance questions

Question

4 Name four appraisal methods.

Answered: 1 week ago

Question

8 What problems can occur with appraisal?

Answered: 1 week ago