Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Use the data in the tables below to answer the following questions: Average rates of return on Treasury bills, government bonds, and common stocks, 1900-2015

image text in transcribed

Use the data in the tables below to answer the following questions: Average rates of return on Treasury bills, government bonds, and common stocks, 1900-2015 Average Premium (Extra return versus Treasury bills) (%) Portfolio Treasury bills Treasury bonds Common stocks Average Annual Rate of Return (%) 3.8 5.3 11.4 1.5 7.6 Standard deviation of returns, 1900-2015 Standard Deviation (%) Portfolio Treasury bills Long-term government bonds Common stocks 2.9 9.0 19.9 a. what was the average rate of return on large U.S. common stocks from 1900 to 2015? (Enter your answer as a percent rounded to 1 decimal place.) Average rate of return b. What was the average risk premium on common stocks? (Enter your answer as a percent rounded to 1 decimal place.) Average risk remium c. What was the standard deviation of returns on common stocks? (Enter your answer as a percent rounded to 1 decimal place.) Standard deviation of returns

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Energy Finance And Economics Analysis And Valuation Risk Management And The Future Of Energy

Authors: Betty Simkins, Russell Simkins

1st Edition

1118017129, 978-1118017128

More Books

Students also viewed these Finance questions