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. Portfolio Average Annual Rate of Return (%) Average Premium (Extra return versus Treasury bills) (%) Treasury bills 3.7 Treasury bonds 5.4 1.7 Common stocks 11.5 7.8 Standard deviation of returns, 1900–2020. Portfolio Standard Deviation (%) Treasury bills 2.8 Long-term government bonds 8.9 Common stocks 19.5 What was the average rate of return on large U.S. common stocks from 1900 to 2020? What was the average risk premium on large stocks? What was the standard deviation of returns on common stocks? 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. Portfolio Average Annual Rate of Return (%) Average Premium (Extra return versus Treasury bills) (%) Treasury bills 3.7 Treasury bonds 5.4 1.7 Common stocks 11.5 7.8 Standard deviation of returns, 1900–2020. Portfolio Standard Deviation (%) Treasury bills 2.8 Long-term government bonds 8.9 Common stocks 19.5 What was the average rate of return on large U.S. common stocks from 1900 to 2020? What was the average risk premium on large stocks? What was the standard deviation of returns on common stocks? Note: Enter your answer as a percent rounded to 1 decimal place.
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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Use the data in the tables below to answer the following questions:
Average
| Portfolio | Average Annual Rate of Return (%) | Average Premium (Extra return versus Treasury bills) (%) |
|---|---|---|
| Treasury bills | 3.7 | |
| Treasury bonds | 5.4 | 1.7 |
| Common stocks | 11.5 | 7.8 |
Standard deviation of returns, 1900–2020.
| Portfolio | Standard Deviation (%) |
|---|---|
| Treasury bills | 2.8 |
| Long-term government bonds | 8.9 |
| Common stocks | 19.5 |
- What was the average rate of return on large U.S. common stocks from 1900 to 2020?
- What was the average risk premium on large stocks?
- What was the standard deviation of returns on common stocks?
Note: Enter your answer as a percent rounded to 1 decimal place.
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