We know that,
Excess return for S&P 500 = S&P Return - Treasury Bill
= 13.5 - 4.1
= 9.4% Answer
The option C is correct.
Consider the following average annual returns: Investment Small Stocks S&P 500 Corporate Bonds Treasure Bonds Treasury...
Consider the following average annual retums: Investment Small Stocks S&P 500 Corporate Bonds Treasure Bonds Treasury Bills Average Return 23.6% 13.7% 7.5% 6.7% 4.6% What is the excess return for Treasury bills? O A. 0% O B. - 2.1% O C. -2.9% OD. - 9.1%
Consider the following average annual retums: Investment Small Stocks S&P 500 Corporate Bonds Treasure Bonds Treasury Bills Average Return 23.8% 13.9% 7.9% 6.8% 4.2% What is the excess return for the S&P 500? O A. 11.8% O B. 16.7% O C. 9.7% O D. 0%
If returns of S&P 500 stocks are normally distributed, what range of returns would you expect to see 95% of the time? Base your answer on the information below. Average Return Standard Deviation of returns Small Stocks 18.37% 38.79% S&P 500 11.84% 20.01% Corporate Bonds 6.47% 6.98% T-Bills 3.46% 3.14% The 95% prediction interval of the S&P500 is between % and %. (Round to two decimal places and put the lower number first.)
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 5.7 8.6 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 Requirement 1: What range of returns would you expect to see 95 percent of the time for long-term corporate bonds? What about 99 percent of the time?
Annual and Average Returns for Stocks, Bonds, and T-Bills, 1950 to 2015 Long-Term Treasury B onds 6.6% .0 1.6 5.7 13.5 Stocks 12.6% 9 28. 8.7 7.5 18.2 19.0 0.9 15.1 2.1 16. 32.4 13.7 1.4 1950 to 2015 Average 1950 to 1959 Average 1960 to 1969 Average 1970 to 1979 Average 1980 to 1989 Average 1990 to 1999 Average 2009 to 2009 Average 2010 Annual Return 2011 Annual Return 2012 Annual Return al Return 2013 Annual Return 2014 Annual...
Use the following table: SeriesAverage returnLarge stocks11.78%Small stocks16.48Long-term corporate bonds6.24Long-term government bonds6.10U.S. Treasury bills3.84Inflation3.10a. Determine the return on a portfolio that was equally invested in large-company stocks and long-term corporate bonds. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What was the return on a portfolio that was equally invested in small stocks and Treasury bills? (Do not round intermediate calculations and enter your answer as a percent rounded to...
Annual and Average Returns for Stocks, Bonds, and T-Bills, 1950 to 2015 Stoeks Longter Treasury Bonds 1-bills Average 12.60 4.400 2.00 th 1950 to 2015 1950 ta 1959 1960 to 1969 1970 to 1979 1980 to 1989 1990 to wa 1999 0.01 0.02 16.0 0.02 2000 to 2009 Annual 2010 Return Annual 2011 Return Annual Return Annual Return Annual 2014 Return annual 2015 Return 2010 to Average 2015 0.07 0.05 0.0€ You have a portfolio with an asset allocation of...
Which of the following has the lowest volatility in history? A. Treasury Bills B. S&P 500 C. Large Stocks D. Corporate Bonds E. Small Stocks
Over the past 88 years, we have observed that investments with the highest average annual returns also tend to have the highest standard deviations of annual returns. This observation supports the notion that there is a positive correlation between risk and return. Which of the following answers correctly ranks investments from highest to lowest risk (and return), where the security with the highest risk is shown first, the one with the lowest risk last? Small-company stocks, long-term corporate bonds, large-company...
Over the past 89 years, we have observed that investments with the highest average annual returns also tend to have the highest standard deviations of annual returns. This observation supports the notion that there is a positive correlation between risk and return. Which of the following answers correctly ranks investments from highest to lowest risk (and return), where the security with the highest risk is shown first, the one with the lowest risk last? a. Large-company stocks, small-company stocks, long-term...