ge ann 1-month U.S. equity T-bills 3.30 0.93 3.59 6.98 1.66 Excess return 8.87 9.33 6.63 11.00 8.50 12.17 10.26 10.21 17.97 10.16 Market Standard deviation 20.25 26.57 20.32 14.40 18.85 Sharpe ratio 0.44 0.35 0.33 0.76 0.45 Period 1927 to 2021 1927 to 1950 1951 to 1974 1975 to 1998 1999 to 2021 From 19 27 to 2021, the passive risky portfolio offered an average risk premium of 8.87% with a standard deviation of 20.25 reward-to-volatility ratio of .44 esulting in a If 68% of net worth of a US investor is in risky assets, what is the average degree of risk aversion of an US Investor?
ge ann 1-month U.S. equity T-bills 3.30 0.93 3.59 6.98 1.66 Excess return 8.87 9.33 6.63 11.00 8.50 12.17 10.26 10.21 17.97 10.16 Market Standard deviation 20.25 26.57 20.32 14.40 18.85 Sharpe ratio 0.44 0.35 0.33 0.76 0.45 Period 1927 to 2021 1927 to 1950 1951 to 1974 1975 to 1998 1999 to 2021 From 19 27 to 2021, the passive risky portfolio offered an average risk premium of 8.87% with a standard deviation of 20.25 reward-to-volatility ratio of .44 esulting in a If 68% of net worth of a US investor is in risky assets, what is the average degree of risk aversion of an US Investor?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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The Return on Equity (RoE) is a measure of the profitability of a business concerning the funds by its stockholders/shareholders. ROE is a metric used generally to determine how well the company utilizes its funds provided by the equity shareholders.
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Question
Transcribed Image Text:Period
1927 to 2021
1927 to 1950
1951 to 1974
1975 to 1998
1999 to 2021
Average annual return
1-month
U.S. equity T-bills
3.30
0.93
3.59
6.98
1.66
12.17
10.26
10.21
17.97
10.16
Excess
return
8.87
9.33
6.63
11.00
8.50
U.S. Equity Market
Standard Sharpe
deviation
ratio
20.25
0.44
26.57
0.35
20.32
0.33
14.40
0.76
18.85
0.45
From 19 27 to 2021, the passive risky portfolio offered an average risk
premium of 8.87% with a standard deviation of 20.25%, resulting in a
reward-to-volatility ratio of .44
If 68% of net worth of a US investor is in risky assets, what is the average
degree of risk aversion of an US Investor?
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