expected range of returns, Financial Accounting

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  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 ____%


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