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Suppose you gathered the following return data on these types of investments over the previous three decades Investment Large-company stocks Small-company stocks Long-term corporate bonds

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Suppose you gathered the following return data on these types of investments over the previous three decades Investment Large-company stocks Small-company stocks Long-term corporate bonds Long-term government bonds U.S. Treasury bills Average Return 14.3% 21.2% Standard Deviation 21.1% 35.3% 10.4% 8.0% 5.2% 7.5% 5.6% During this 30-year period, what was the risk premium on large-company stocks? 9.3% 7.8% 6.090 8.7% 11.2% If you were to plot the distribution of returns for each of these investments, which investment would have the tightest distribution? In other words, which investment would have the most observations near the average and the narrowest distribution curve? O U.S. Treasury bills O Short-term government bonds O Large-company stocks O Long-term government bonds O Small-company stocks Which investment exposes the investor to the greatest chance of negative returns in a given year? O Short-term government bonds O U.S. Treasury bills O Long-term government bonds O Small-company stocks O Large-company stocks what is the probability of observing a return on large-company stocks that is greater than 35.4%? Assume a normal distribution

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