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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
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 | 6.5% | 9.3% |
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% |
What range of returns would you expect to see 95 percent of the time for long-term corporate bonds? (enter your answers as a percent rounded to 2 decimal places)
Expected Range of Returns ??.??% to ??.??%
What about 99 percent of the time?
Expected Range of Returns ??.??% to ??.??%
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