Question
ANswer? Consider the following table for the total annual returns for a given period of time. Series Average return Standard Deviation Large-company stocks 11.7 %
ANswer?
Consider the following table for the total annual returns for a given period of time. |
Series | Average return | Standard Deviation | ||
Large-company stocks | 11.7 | % | 20.6 | % |
Small-company stocks | 16.4 | 33.0 | ||
Long-term corporate bonds | 5.4 | 8.2 | ||
Long-term government bonds | 6.1 | 9.4 | ||
Intermediate-term government bonds | 5.6 | 5.7 | ||
U.S. Treasury bills | 3.8 | 3.1 | ||
Inflation | 3.1 | 4.2 |
Requirement 1: |
What range of returns would you expect to see 68 percent of the time for long-term corporate bonds? (Negative amount should be indicated by a minus sign. Input your answers from lowest to highest to receive credit for your answers. Do not round intermediate calculations. Enter your answers as a percentage rounded to 2 decimalplaces(e.g., 32.16).) |
Expected range of returns | % to % |
Requirement 2: |
What about 95 percent of the time? (Negative amount should be indicated by a minus sign. Input your answers from lowest to highest to receive credit for your answers. Do not round intermediate calculations. Enter your answers as a percentage rounded to 2 decimalplaces(e.g., 32.16).) |
Expected range of returns |
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