Question
Consider the following table for the total annual returns for a given period of time. Series Average Return Standard Deviation Large Company Stocks 11.2% 19.4%
Consider the following table for the total annual returns for a given period of time.
Series | Average Return | Standard Deviation |
Large Company Stocks | 11.2% | 19.4% |
Small Company Stocks | 16.4% | 33.0% |
Long term corporate bonds | 6.2% | 8.4% |
Long term government bonds | 6.1% | 9.4% |
Intermediate term govenment bonds | 5.6% | 5.7% |
US Treasury Bills | 3.8% | 3.1% |
Inflation | 3.1% | 4.2% |
Requirement 1: | |
What range of returns would you expect to see 95 percent of the time for large-company stocks? (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 decimal places (e.g., 32.16).) |
Expected range of returns | % to % |
Requirement 2: | |
What about 99 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 answer as a percentage rounded to 2 decimal places (e.g., 32.16).) |
Expected range of returns | % to % |
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