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14 Over the last one hundred years a. long term government bonds have outperformed large company...
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.
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...
Which one of these statements is correct? 7. o Treasury bills outperformed inflation every year during...
Which one of these statements is correct? 7. o Treasury bills outperformed inflation every year during the period 1926-2015. o Small-company stocks outperformed large-company stocks every year during the period 1926-2015 o On an annual basis, small company stocks had more consistent rates of return than did large-company stocks for the period 1926-2015. o The Inflation rate has been positive every year during the period 1926-2015. o During the 1930s (Great Depression), long-term government bonds produced a relatively stable rate...
Over the past 89 years, we have observed that investments with the highest average annual returns...
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...
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...
Over the past 88 years, we have observed that investments with the highest average annual returns...
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...
4) (4 pts) Given the average return on the following Investments over the last 50 years:...
4) (4 pts) Given the average return on the following Investments over the last 50 years: Large Company Stocks Long-term Corporate Bonds Long term Government Bonds US Treasury Bills Inflation 50 year average 50 year average = 6.2% 50 year average 5.7% 50 year average: 3.5% 50 year average: 2.2% 9.4% What was the average historical risk premium for Large Company Stocks over the last 50 years? 8 What was the average historical real rate of return for Large Company...
Average return Standard Deviation 12.1 % Series Large-company stocks Small-company stocks Long-term corporate bonds Long-term government...
Average return Standard Deviation 12.1 % Series Large-company stocks Small-company stocks Long-term corporate bonds Long-term government bonds Intermediate-term government bonds U.S. Treasury bills Inflation 19.8% 31.7 16.5 6.4 8.3 6.0 9.9 5.2 5.6 3.4 3.1 3.0 4.0 a. What range of returns would you expect to see 68 percent of the time for long-term corporate bonds? (A negative answer should be indicated by a minus sign. Enter your answers from lowest to highest. Do not round intermediate calculations and enter...
6) Over a 25-year period an asset had an arithmetic return of 13.1 percent and a geometric return of 12.6 percent....
6) Over a 25-year period an asset had an arithmetic return of 13.1 percent and a geometric return of 12.6 percent. Using Blume's formula, what is your best estimate of the future annual returns over the next 10 years? A) 11.84 percent B) 13.04 percent C) 12.46 percent D) 11.18 percent E) 12.91 percent 6 7) Which one of the following statements is correct based on the period 1926-2016? A) The standard deviation of the annual rate of inflation was...
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...
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 these statements is correct? 7. o Treasury bills outperformed inflation every year during the period 1926-2015. o Small-company stocks outperformed large-company stocks every year during the period 1926-2015 o On an annual basis, small company stocks had more consistent rates of return than did large-company stocks for the period 1926-2015. o The Inflation rate has been positive every year during the period 1926-2015. o During the 1930s (Great Depression), long-term government bonds produced a relatively stable rate...
4) (4 pts) Given the average return on the following Investments over the last 50 years: Large Company Stocks Long-term Corporate Bonds Long term Government Bonds US Treasury Bills Inflation 50 year average 50 year average = 6.2% 50 year average 5.7% 50 year average: 3.5% 50 year average: 2.2% 9.4% What was the average historical risk premium for Large Company Stocks over the last 50 years? 8 What was the average historical real rate of return for Large Company...
Average return Standard Deviation 12.1 % Series Large-company stocks Small-company stocks Long-term corporate bonds Long-term government bonds Intermediate-term government bonds U.S. Treasury bills Inflation 19.8% 31.7 16.5 6.4 8.3 6.0 9.9 5.2 5.6 3.4 3.1 3.0 4.0 a. What range of returns would you expect to see 68 percent of the time for long-term corporate bonds? (A negative answer should be indicated by a minus sign. Enter your answers from lowest to highest. Do not round intermediate calculations and enter...
6) Over a 25-year period an asset had an arithmetic return of 13.1 percent and a geometric return of 12.6 percent. Using Blume's formula, what is your best estimate of the future annual returns over the next 10 years? A) 11.84 percent B) 13.04 percent C) 12.46 percent D) 11.18 percent E) 12.91 percent 6 7) Which one of the following statements is correct based on the period 1926-2016? A) The standard deviation of the annual rate of inflation was...
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