Homework Answers
The answer is the 2nd option i.e. “small company stocks outperformed large-company stocks every year during the period 1926-2015”.
Explanation: During the period 1926-2015 small company stocks was that category of securities that outperformed all other categories like long-term corporate bonds, large company stocks, U.S. treasury bills, and long term government bonds as well.
Add Answer to:
Which one of these statements is correct? 7. o Treasury bills outperformed inflation every year during...
Over the past 75 years 1) small-company stocks outperformed large-company stocks. W 1 2) U.S. Treasury...
Over the past 75 years 1) small-company stocks outperformed large-company stocks. W 1 2) U.S. Treasury bills outperformed long-term government bonds. 3) large-company stocks outperformed all other investment categories. 4) inflation exceeded the rate of return on U.S. Treasury bills. 5) long-term government bonds outperformed long-term corporate bonds.
Which one of the following is a correct ranking of securities based on the volatility of...
Which one of the following is a correct ranking of securities based on the volatility of their annual returns over the period of 1926-2013? Rank from highest to lowest. Multiple Choice Large-company stocks, U.S. Treasury bills, long-term government bonds o C) Small-company stocks, long-term corporate bonds, large-company stocks o Long-term government bonds, long-term corporate bonds, Intermediate-term government bonds o o Intermediate-term government bonds, long-term corporate bonds, U.S. Treasury bills o O Large-company stocks, small company stocks, long-term government bonds
14 Over the last one hundred years a. long term government bonds have outperformed large company...
14 Over the last one hundred years a. long term government bonds have outperformed large company stocks b long term government bonds have outperformed Treasury bills c interest income plus operating income d Inflation has been higher than long-term government bonds 15 Let's say a company's stock price falls significanlty immediatley after reports of dissapointing sales during the period are announced. This best describes a. strong form market efficiency b weak form market efficiency c neutral form efficient d volatile...
all one problem please help with all FIGURE 10. 4 A $1 investment in different types...
all one problem please help with all
FIGURE 10. 4 A $1 investment in different types of portfolios 1925-2014 [year-end 1925 = 51) $100.000 $27419 32 $10.000 $5,316 86 Smat company los $.000 Large company $135 18 5100 500 5 $13.10 government to Infat Treasury tells 1925 1930 1939 1940 1949 1950 1959 1960 1969 1970 1975 1980 1985 1990 1995 2000 2005 2010 Year-end Bon art, and not abood Morningstar Ine. Chikapo mwly updates work by Hogor B o...
9. Standard deviation is a measure of which one of the following? A. average rate of...
9. Standard deviation is a measure of which one of the following? A. average rate of return B. volatility C. probability D. risk premium E. real returns 10. Which one of the following categories of securities had the highest average return for the period 1926-2010? A. U.S. Treasury bills B. large company stocks C. small company stocks D. long-term corporate bonds E. long-term government bonds
1.Which one of the following categories of securities had the most volatile annual returns over the...
1.Which one of the following categories of securities had the most volatile annual returns over the period 1926–2016? a ,Long-term corporate bonds b,Large-company stock c,Intermediate-term government bonds d,U.S. Treasury bills e,Small-company stocks 2. Which one of the following statements is correct based on the historical record for the period 1926–2016? a,The standard deviation of returns for small-company stocks was double that of large-company stocks. b,U.S. Treasury bills had a zero standard deviation of returns because they are considered to be...
Historical average returns for Large Company Common Stocks, Long Term Government Bonds, and US Treasury Bills...
Historical average returns for Large Company Common Stocks, Long Term Government Bonds, and US Treasury Bills for the period 10-year period of 1999 through 2008 are shown in the following table. Use these data to solve the next several problems. Year Large Common Stock Long Term Government Bonds US Treasury Bills 1999 0.2104 -0.0751 0.0480 2000 -0.0910 0.1722 0.0598 2001 -0.1189 0.0551 0.0333 2002 -0.2210 0.1515 0.0161 2003 0.2889 0.0201 0.0094 2004 0.1088 0.0812 0.0114 2005 0.0491 0.0689 0.0279 2006 0.1579...
Consider the following rates of return: Year Large-Company Stocks US Treasury Bills 1 3.99 % 4.59...
Consider
the following rates of return: Year Large-Company Stocks US
Treasury Bills 1 3.99 % 4.59 % 2 14.16 4.94 3 19.25 3.86
4 –14.43 6.99
5 –31.92 5.30 6 37.49 6.20 a. Calculate the arithmetic average
returns for large-company stocks and T-bills over this period b.
Calculate the standard deviation of the returns for large-company
stocks and T-bills over this period. c. Calculate the observed risk
premium in each year for the large-company stocks versus the
T-bills. What was...
During the past year, you had a portfolio that contained U.S. government T-bills, long-term government bonds,...
During the past year, you had a portfolio that contained U.S. government T-bills, long-term government bonds, and common stocks. The rates of return on each of them were as follows: U.S. government T-bills 3.40 % U.S. government long-term bonds 4.70 U.S. common stocks 6.20 During the year, the consumer price index, which measures the rate of inflation, went from 100 to 114 (1982 – 1984 = 100). Compute the rate of inflation during this year. Round your answer to one...
Saved Assume that the historical return on large-company stocks is a predictor of the future returns....
Saved Assume that the historical return on large-company stocks is a predictor of the future returns. What return would you estimate for large-company stocks over the next year? The next 10 years? 20 years? 40 years? Refer to Table 12.4 (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) 1 year 10 years 20 years 40 years TABLE 12.4 Geometric versus Arithmetic Average Returns: 1926-2016 Average Return Standard Deviation Geometric...
Over the past 75 years 1) small-company stocks outperformed large-company stocks. W 1 2) U.S. Treasury bills outperformed long-term government bonds. 3) large-company stocks outperformed all other investment categories. 4) inflation exceeded the rate of return on U.S. Treasury bills. 5) long-term government bonds outperformed long-term corporate bonds.
Which one of the following is a correct ranking of securities based on the volatility of their annual returns over the period of 1926-2013? Rank from highest to lowest. Multiple Choice Large-company stocks, U.S. Treasury bills, long-term government bonds o C) Small-company stocks, long-term corporate bonds, large-company stocks o Long-term government bonds, long-term corporate bonds, Intermediate-term government bonds o o Intermediate-term government bonds, long-term corporate bonds, U.S. Treasury bills o O Large-company stocks, small company stocks, long-term government bonds
14 Over the last one hundred years a. long term government bonds have outperformed large company stocks b long term government bonds have outperformed Treasury bills c interest income plus operating income d Inflation has been higher than long-term government bonds 15 Let's say a company's stock price falls significanlty immediatley after reports of dissapointing sales during the period are announced. This best describes a. strong form market efficiency b weak form market efficiency c neutral form efficient d volatile...
all one problem please help with all
FIGURE 10. 4 A $1 investment in different types of portfolios 1925-2014 [year-end 1925 = 51) $100.000 $27419 32 $10.000 $5,316 86 Smat company los $.000 Large company $135 18 5100 500 5 $13.10 government to Infat Treasury tells 1925 1930 1939 1940 1949 1950 1959 1960 1969 1970 1975 1980 1985 1990 1995 2000 2005 2010 Year-end Bon art, and not abood Morningstar Ine. Chikapo mwly updates work by Hogor B o...
9. Standard deviation is a measure of which one of the following? A. average rate of return B. volatility C. probability D. risk premium E. real returns 10. Which one of the following categories of securities had the highest average return for the period 1926-2010? A. U.S. Treasury bills B. large company stocks C. small company stocks D. long-term corporate bonds E. long-term government bonds
Consider
the following rates of return: Year Large-Company Stocks US
Treasury Bills 1 3.99 % 4.59 % 2 14.16 4.94 3 19.25 3.86
4 –14.43 6.99
5 –31.92 5.30 6 37.49 6.20 a. Calculate the arithmetic average
returns for large-company stocks and T-bills over this period b.
Calculate the standard deviation of the returns for large-company
stocks and T-bills over this period. c. Calculate the observed risk
premium in each year for the large-company stocks versus the
T-bills. What was...
Saved Assume that the historical return on large-company stocks is a predictor of the future returns. What return would you estimate for large-company stocks over the next year? The next 10 years? 20 years? 40 years? Refer to Table 12.4 (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) 1 year 10 years 20 years 40 years TABLE 12.4 Geometric versus Arithmetic Average Returns: 1926-2016 Average Return Standard Deviation Geometric...
Most questions answered within 3 hours.
-
Accent Software faces the following conditions. All of these
support Accent’s use of a market-penetration pricing...
asked 51 minutes ago -
A mathematically inclined friend emails you the following
instructions: "Meet me in the cafeteria the first...
asked 54 minutes ago -
A monopoly sells in two countries . The demand curves in the two
countries are p1...
asked 1 hour ago -
A .15kg rubber ball is bounced off a wall. Before hitting the
wall, the ball moves...
asked 2 hours ago -
A manufacturing company preparing to build a new plant is
considering three potential locations for it....
asked 2 hours ago -
B. If compound Y has approximately the same values of solubility
in toluene as compound X,...
asked 3 hours ago -
Oscar Inc. has inventory in Japan valued at 39,051,000 Yen one
year ago. One year ago...
asked 3 hours ago -
If Canada suffered from "fundamental disequilibrium," and its
government choose not to devalue its currency, a...
asked 3 hours ago -
4. How many input & output Key Value Pairs are passed into,
and emitted out of...
asked 3 hours ago -
Why would your heart not function well if constructed of
skeletal muscle? What is the particular...
asked 3 hours ago -
Please respond to this essay question in full essay form for
Chemistry 1102 Organic and Biochemistry:...
asked 3 hours ago -
Determine the head loss and velocity of flow in a water supply main
of 15.0 cm...
asked 3 hours ago