Use the data in the tables below to answer the following questions: Average rates of return on Treasury bills, government bonds, and common stocks, 1900-2020. Average Annual Rate of Return (8) Average Premium (Extra return versus Treasury bills) (%) Portfolio Treasury bills Treasury bonds Common stocks Standard deviation of returns, 1900-2020. Portfolio Treasury bills Long-term government bonds Common stocks 3.7 5.4 11.5 Standard Deviation (%) a. Average rate of return b. Average risk premium c. Standard deviation of returns 2.8 8.9 19.5 a. What was the average rate of return on large U.S. common stocks from 1900 to 2020? b. What was the average risk premium on large stocks? c. What was the standard deviation of returns on common stocks? 1.7 7.8 Note: Enter your answer as a percent rounded to 1 decimal place. % % %
Use the data in the tables below to answer the following questions: Average rates of return on Treasury bills, government bonds, and common stocks, 1900-2020. Average Annual Rate of Return (8) Average Premium (Extra return versus Treasury bills) (%) Portfolio Treasury bills Treasury bonds Common stocks Standard deviation of returns, 1900-2020. Portfolio Treasury bills Long-term government bonds Common stocks 3.7 5.4 11.5 Standard Deviation (%) a. Average rate of return b. Average risk premium c. Standard deviation of returns 2.8 8.9 19.5 a. What was the average rate of return on large U.S. common stocks from 1900 to 2020? b. What was the average risk premium on large stocks? c. What was the standard deviation of returns on common stocks? 1.7 7.8 Note: Enter your answer as a percent rounded to 1 decimal place. % % %
Fundamentals of Financial Management (MindTap Course List)
14th Edition
ISBN:9781285867977
Author:Eugene F. Brigham, Joel F. Houston
Publisher:Eugene F. Brigham, Joel F. Houston
Chapter8: Risk And Rates Of Return
Section: Chapter Questions
Problem 22SP
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