Average return=Total return/Total time period
=(7+6+5+8)/4=6.5%
Return | (Return-Average Return)^2 |
7 | (7-6.5)^2=0.25 |
6 | (6-6.5)^2=0.25 |
5 | (5-6.5)^2=2.25 |
8 | (8-6.5)^2=2.25 |
Total=5% |
Standard deviation=[Total (Return-Average Return)^2/(Time period-1)]^(1/2)
=[5/(4-1)]^(1/2)
=[5/3]^(1/2)
=1.29%(Approx).
11.2-28 Question Help Treasury bill returns are 7%, 6%, 5%, and 8% over four years. The...
Suppose we have the following Treasury bill returns and inflation rates over an eight year period: Suppose we have the following Treasury bill returns and inflation rates over an eight year period: Year Treasury Bills Inflation 1 7.70% 9.20% 2 8.46 12.88 3 6.31 7.41 4 5.48 5.24 5 5.89 7.17 6 8.11 9.52 7 11.10 13.84 8 12.70 13.19 a. Calculate the average return for Treasury bills and the average annual inflation rate for this period. (Do not round...
11.2-33 Question Help The average annual return over the period 1886-2006 for stocks that comprise the S&P 500 is 5%, and the standard deviation of returns is 15%. Based on these numbers, what is a 95% confidence interval for 2007 returns? A. -25%, 25% В. — 15%, 25% С. - 12.5%, 17.5% D. -25%, 35%
Suppose we have the following Treasury bill returns and inflation rates over an eight- year period: Year WN Treasury Bills 10.45% 11.36 9.06 8.34 8.88 11.23 14.11 15.97 Inflation 12.55% 16.00 10.29 7.97 10.29 12.77 16.98 16.90 00 O a. Calculate the arithmetic average return for Treasury bills and the average annual inflation rate (consumer price index) for this period. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Average...
Suppose we have the following returns for large-company stocks and Treasury bills over a six year period: Year Large Company US Treasury Bill 6.59 3.97 1 2 14.34 4.42 19.23 4.29 7.32 4 -14.45 -31.94 5.28 5.38 6 37.47 a. Calculate the arithmetic average returns for large-company stocks and T-bills over this period. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Average returns Large company stocks T-bills b. Calculate the...
Only find the annualized yield for the 6-month Treasury bill. The other answers are all correct. Homework: 4-1 MyLab Homework Save Score: 3 of 4 pts 4 of 8 (8 complete) HW Score: 67.97%, 21.75 of 32 pt & Problem 8-1 (algorithmic) Question Help U.S. Treasury Bill Auction Rates - March 2009. The interest yields on U.S. Treasury securities in early 2009 fell to very low levels as a result of the combined events surrounding the global financial crisis. Calculate...
Ajax Corporation has experienced returns of 12%, 15%, 8% and 2% returns over the past four years. Given this information, calculate the company's standard deviation. Question 6 options: 4.88% 5.04% 5.62% 6.04% None of the above
A stock had returns of 8%, -2%, 4%, and 16% over the past four years. What is the standard deviation of this stock for the past four years? 7.1% 7.5% 6.3% 6.6%
Problem 10-22 Calculating Returns [LO 2, 3] Consider the following table for an eight-year period: YearT-bill returnInflation 17.32%8.68% 28.19 12.31 35.90 6.91 45.22 4.89 55.48 6.67 67.79 8.99 710.59 13.26 812.25 12.49 Calculate the average return for Treasury bills and the average annual inflation rate (consumer price index) for this period. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Average return for Treasury bills % Average annual inflation...
Consider the following table for a period of six years: Returns Year Large-Company Stocks U.S. Treasury Bills 1 –15.59 % 7.47 % 2 –26.74 8.08 3 37.41 6.05 4 24.11 5.97 5 –7.52 5.54 6 6.75 7.91 Calculate the arithmetic average returns for large-company stocks and T-bills over this time period. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Arithmetic average returns Large-company stock % T-bills % Calculate...
Ajax Corporation has experienced returns of 12%, 15%, 8% and 2% returns over the past four years. Given this information, calculate the company's standard deviation. Question 1 options: 4.88% 5.04% 5.62% 6.04% None of the above