expected range of returns, Financial Accounting

 

  Series

Arithmetic Mean

Standard Deviation

  Small-company stocks

15.9

 %

32.8

 %

  Large-company stocks

12.2

 

21.1

 

  Long-term corporate bonds

5.4

 

8.3

 

  Long-term government bonds

5.3

 

9.6

 

  Intermediate-term government bonds

5.3

 

4.8

 

  U.S. Treasury bills

4.2

 

2.7

 

  Inflation

2.2

 

3.6

 

 Required:

(a) What range of returns would you expect to see 68 percent of the time for large-company stocks? (Do not include the percent signs (%).Negative amount should be indicated by a minus sign. Input your answers from lowest to highest to receive credit for your answers.  Round your answers to 2 decimal places. (e.g., 32.16))

 Expected Range of returns ___% to _____%

 (b) What about 95 percent of the time? (Do not include the percent signs (%).Negative amount should be indicated by a minus sign. Input your answers from lowest to highest to receive credit for your answers. Round your answers to 2 decimal places. (e.g., 32.16))

 Expected Range of returns ___% to ____%

Posted Date: 3/29/2013 4:12:21 AM | Location : United States







Related Discussions:- expected range of returns, Assignment Help, Ask Question on expected range of returns, Get Answer, Expert's Help, expected range of returns Discussions

Write discussion on expected range of returns
Your posts are moderated
Related Questions
Suppose that the risk-free rate is 7% and that the market risk premium is 7%. What is the needed rate of return on a stock with a beta of 1.2? What is the needed rate of retu

Management and operational control: Cost of goods sold and gross margin analysis, profit as net income analysis, operating expense analysis, contribution analysis and analysis of

Red Herring -‘Pre-release' PROSPECTUS offering. An announcement of a future issuance of SECURITIES, given restricted circulation during waiting period of 20 days or other specified

In January, 2008, Sanford Corporation purchased a patent for a new product for $1,200,000. The patent was valid for fifteen years but it was estimated to have a useful life of ten

Statement of Cash Flows - A statement of cash flows is one of the fundamental financial statements which is required as part of a complete set of financial statements prepared in c

a private owned business, pay salary to its employees according to the Ethiopian calendar month to the addis ababa city administration tax authority . Basic salary 3936 ,Normar wor

FOREING BRANCHES The head office my set up a branch in a foreign  country. IAS 21 requires that the results of that  foreign branch to be translated into the local currency for t

Dissolution of a partnership A partnership is dissolved when: It is temporary (maybe set up for a given period which has lapsed); One partner notifies the others in writ

Question 1 Explain the five accounting concepts with an example Separate entity concept Going concern concept Money measurement concept Cost concept Dual aspect

Archer Daniels Midland Company is considering buying a new farm that it plans to operate for 10 years. The farm will require an initial investment of $12.00 million. This investm