Which one of the following has the highest risk premium based on historical information? Canadian Treasury...
Which one of the following has the highest risk premium based on historical information?
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Canadian Treasury bill |
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Corporate bonds |
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Large-company stocks |
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Government bonds |
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Small-company stocks |
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None of the above |
Homework Answers
Small-company stocks
because these stocks tend to have high level of volatility
the above will be the answer
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Which one of the following has the highest risk premium based on
historical information?
Canadian Treasury...
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
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...
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...
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
Question 3 Unsaved Rank the following from highest to lowest by historical rate of return. Question...
Question 3 Unsaved Rank the following from highest to lowest by historical rate of return. Question 3 options: Large Stocks (S&P 500) Long-Term Bonds Small Stocks (Russell 2000) Gold Question 4 Unsaved Rank the following from Highest to Lowest by Risk as measured by the Historical Standard Deviation. Tech Stocks (NASDAQ) Treasury Bills Long Term Bonds Broad Market Index (Wilshire 5000) Question 5 Unsaved Which of the following asset classes have significantly out performed inflation as measure by the Consumer...
Which of the following portfolios has the least risk? Select one: a. A portfolio of Treasury...
Which of the following portfolios has the least risk? Select one: a. A portfolio of Treasury bills b. A portfolio of U.S. common stocks of large firms c. A portfolio of long-term U.S. government bonds d. A portfolio of U.S. common stocks of small firms
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...
Ver the past 8p yeaur, we hare observed that eswthe highest anwerage snuaeturns als tend to have ...
ver the past 8p yeaur, we hare observed that eswthe highest anwerage snuaeturns als tend to have the highest standard deviations of amancal eturns there is a positive cormelation betiween risk and return. Which oaf the folowing ansmers correctly ranks investments from bichest to lomest risk (and returm), where the security m first, the one with the lowest risk last? a. Sma/onpany stods, kng term corporate bone, lanpecompany stods. Ingtem governmet bonds, us. &.Large-company stocks, small-company stocks, long term corporate...
What do investors sometimes use as a proxy for the risk-free rate? 6) What do investors...
What do investors sometimes use
as a proxy for the risk-free rate?
6) What do investors sometimes use as a proxy for the risk-free rate? 7) How would you define the market risk premium? 8) Given the following historical returns, what was the historical risk premium of Corporate bonds?, what was the historical risk premium for Small stocks?, What was the historical risk premium for the "Market"? Corporate bonds: 6.6% Inflation: 3% S&P 500: 11.5% Treasury Bills: 4.5% Treasury bonds:...
Answer the next 3 questions based on the following information: Assume that3-month Treasury bill are yielding...
Answer the next 3 questions based on the following information: Assume that3-month Treasury bill are yielding 1.4%, 10-year Treasury bonds are yielding 2.8%, an Aaa-rated 10-year corporate bond is 5%, and real risk-free rate is 1%. 18) What is the inflation risk premium for 3-month Treasury b ill? (Hint: the inte rest rate of 3-month Treasury bill is a proxy for risk-free rate) A) 1.8% B) 1.4% C) 1% D) 0.4% 19) What is the maturity risk premium for 10-year...
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
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
ver the past 8p yeaur, we hare observed that eswthe highest anwerage snuaeturns als tend to have the highest standard deviations of amancal eturns there is a positive cormelation betiween risk and return. Which oaf the folowing ansmers correctly ranks investments from bichest to lomest risk (and returm), where the security m first, the one with the lowest risk last? a. Sma/onpany stods, kng term corporate bone, lanpecompany stods. Ingtem governmet bonds, us. &.Large-company stocks, small-company stocks, long term corporate...
What do investors sometimes use
as a proxy for the risk-free rate?
6) What do investors sometimes use as a proxy for the risk-free rate? 7) How would you define the market risk premium? 8) Given the following historical returns, what was the historical risk premium of Corporate bonds?, what was the historical risk premium for Small stocks?, What was the historical risk premium for the "Market"? Corporate bonds: 6.6% Inflation: 3% S&P 500: 11.5% Treasury Bills: 4.5% Treasury bonds:...
Answer the next 3 questions based on the following information: Assume that3-month Treasury bill are yielding 1.4%, 10-year Treasury bonds are yielding 2.8%, an Aaa-rated 10-year corporate bond is 5%, and real risk-free rate is 1%. 18) What is the inflation risk premium for 3-month Treasury b ill? (Hint: the inte rest rate of 3-month Treasury bill is a proxy for risk-free rate) A) 1.8% B) 1.4% C) 1% D) 0.4% 19) What is the maturity risk premium for 10-year...
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