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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
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 | 6.4 | 9.7 | |||
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 68 percent of the time for long-term corporate bonds?
Requirement 2: What about 95 percent of the time? |
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