(Quantitative Question) Consider the following average annual returns: Investment Average Return Small Stocks 22.2% S&P 500 13.296 Corporate Bonds 7.2% Treasury Bonds 5.796 Treasury Bills 496 Calculate the excess of average returns for: i. the portfolio of small stocks ii. S&P 500 iii. Corporate Bonds

EBK CFIN
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ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
Chapter8: Risk And Rates Of Return
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QUESTION 19
(Quantitative Question) Consider the following average annual returns:
Investment
Average Return
Small Stocks
22.2%
S&P 500
13.2%
Corporate Bonds
7.296
Treasury Bonds
5.796
Treasury Bills
496
Calculate the excess of average returns for:
i. the portfolio of small stocks
ii. S&P 500
iii. Corporate Bonds
Write the answers to each of the three parts both
in the space provided and on the empty pages on which you will also show your work.
Transcribed Image Text:QUESTION 19 (Quantitative Question) Consider the following average annual returns: Investment Average Return Small Stocks 22.2% S&P 500 13.2% Corporate Bonds 7.296 Treasury Bonds 5.796 Treasury Bills 496 Calculate the excess of average returns for: i. the portfolio of small stocks ii. S&P 500 iii. Corporate Bonds Write the answers to each of the three parts both in the space provided and on the empty pages on which you will also show your work.
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