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Over the past four years, large-company stocks and U.S. Treasury bills have produced the returns stated below. Year 1Year 2Year 3Year 4 Percent return on
Over the past four years, large-company stocks and U.S. Treasury bills have produced the returns stated below.
Year 1Year 2Year 3Year 4
Percent return on large-company stocks125918
Percent return on U.S. Treasury bills 2334
During this period, inflation averaged 2.9%. Given this information, the average real rate of return on large-company stocks was ___ percent as compared to _____ percent for Treasury bills and the standard deviation for large-company stocks was _____ as compared to ____ for Treasury bills.
a. | 7.87; 0.10; 4.87; 0.67 |
b. | 7.87; 0.10; 5.48; 0.82 |
c. | 7.87; 1.00; 6.24; 1.01 |
d. | 11.00; .03; 6.24; 1.01 |
e. | 11.00; .03; 5.48; 0.82 |
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