Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Basic Finance Expert

Finance


Home >> Basic Finance

Question: Standard deviation. Calculate the standard deviation of U.S. Treasury? bills, long-term government? bonds, and? large-company stocks for 1987 to 1996 from Table. Which had the highest? variance? Which had the lowest? variance

Year

Three-Month U.S.Treasury Bills

Long-Term Government Bonds

Large Company Stocks

Small Company Stocks

1950

1.20%

-0.96%

32.68%

48.45%

1951

1.49%

-1.95%

23.47%

9.41%

1952

1.66%

1.93%

18.91%

6.36%

1953

1.82%

3.83%

-1.74%

-5.66%

1954

0.86%

4.88%

52.55%

65.13%

1955

1.57%

-1.34%

31.44%

21.84%

1956

2.46%

-5.12%

6.45%

3.82%

1957

3.14%

9.46%

-11.14%

-15.03%

1958

1.54%

-3.71%

43.78%

70.63%

1959

2.95%

-3.55%

12.95%

17.82%

1960

2.66%

13.78%

0.19%

-5.16%

1961

2.13%

0.19%

27.63%

30.48%

1962

2.72%

6.81%

-8.79%

-16.41%

1963

3.12%

-0.49%

22.63%

12.20%

1964

3.54%

4.51%

16.67%

18.75%

1965

3.94%

-0.27%

12.50%

37.67%

1966

4.77%

3.70%

-10.25%

-8.08%

1967

4.24%

-7.41%

24.11%

103.39%

1968

5.24%

-1.20%

11.00%

50.61%

1969

6.59%

-6.52%

-8.33%

-32.27%

1970

6.50%

12.69%

4.10%

-16.54%

1971

4.34%

17.47%

14.17%

18.44%

1972

3.81%

5.55%

19.14%

-0.62%

1973

6.91%

1.40%

-14.75%

-40.54%

1974

7.93%

5.53%

-26.40%

-29.74%

1975

5.80%

8.50%

37.26%

69.54%

1976

5.06%

11.07%

23.98%

54.81%

1977

5.10%

0.90%

-7.26%

22.02%

1978

7.15%

-4.16%

6.50%

22.29%

1979

10.45%

9.02%

18.77%

43.99%

1980

11.57%

13.17%

32.48%

35.34%

1981

14.95%

3.61%

-4.98%

7.79%

1982

10.71%

6.52%

22.09%

27.44%

1983

8.85%

-0.53%

22.37%

34.49%

1984

10.02%

15.29%

6.46%

-14.02%

1985

7.83%

32.68%

32.00%

28.21%

1986

6.18%

23.96%

18.40%

3.40%

1987

5.50%

-2.65%

5.34%

-13.95%

1988

6.44%

8.40%

16.86%

21.72%

1989

8.32%

19.49%

31.34%

8.37%

1990

7.86%

7.13%

-3.20%

-27.08%

1991

5.65%

18.39%

30.66%

50.24%

1992

3.54%

7.79%

7.71%

27.84%

1993

2.97%

15.48%

9.87%

20.30%

1994

3.91%

-7.18%

1.29%

-3.34%

1995

5.58%

31.67%

37.71%

33.21%

1996

5.50%

-0.81%

23.07%

16.50%

1997

5.32%

15.08%

33.17%

22.36%

1998

5.11%

13.52%

28.58%

-2.55%

1999

4.80%

-8.74%

21.04%

21.26%

50-year average

5.226%

5.936%

14.890%

17.103%

Standard Deviation

2.980%

9.493%

16.695%

29.043%

1. What is the standard deviation of U.S. Treasury bills for 1985 to 1994??

2. What is the standard deviation of? long-term government bonds for 1985 to 1994??

3. What is the standard deviation of? large-company stocks for 1985 to 1994??

4. Which investment had the highest variance from 1985 to 1994??

- Long-term government bond

- U.S. Treasury bills

- Large-company stocks

- Which investment had the lowest variance from 1985 to 1994??

- Long dash term government bond

- U.S. Treasury bills

- Large-company stocks

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M92602116

Have any Question?


Related Questions in Basic Finance

Question - you are promised 10000 a year for six years

Question - You are promised $10,000 a year for six years after which you will receive $5,000 a year for six years. If you can earn 8 percent annually, what is the present value of this stream of payments?

What factors are involved in cash flow management as they

What factors are involved in cash flow management as they relate to various payment methods and What kinds of payment terms might the business venture have with its vendor to help manage its cash flow?

Question - laine needs to save up 4000 in 4 years if she

Question - laine needs to save up $4000 in 4 years. If she can set aside $1000 today, what rate of return does she need on her account? Elaine needs to save up $4000 in 4 years. If she can set aisde $50 per month what ra ...

Question what are the risks associated with fixed income

Question: What are the risks associated with fixed income security. What are possible scenarios that may occur to illustrate the nature of these risks. Question: What are the alternatives a company may look into to prote ...

A company recently had 26 million shares outstanding

A company recently had 26 million shares outstanding trading at $45/share. The company announces its intention to raise $290M by selling new shares. Studies show losses are 30%of the size of the new issue, so how large a ...

If the rate of inflation is 43 what nominal interest rate

If the rate of inflation is 4.3%?, what nominal interest rate is necessary for you to earn a 2.8 %real interest rate on your? investment? ?(Note: Be careful not to round any intermediate steps less than six decimal? plac ...

How much money would you need to deposit today at 3000

How much money would you need to deposit today at 30.00% annual interest compounded monthly to have $40,610 in the account after 2 years?

The firm has bonds that pay a 5 coupon rate mature in 10

The firm has bonds that pay a 5% coupon rate, mature in 10 years and sell for $975. The preferred stock is selling for $35 and pays a $3.00 dividend. The common stock is selling for $20, just paid a $2.25 dividend and is ...

Miletus bronze works has an outstanding bond that pays 964

Miletus Bronze Works has an outstanding bond that pays 9.64 percent interest. You are in the 37 percent tax bracket. What is your aftertax yield (in percents) on this bond?

Craigs cake company has an outstanding issue of 15-year

Craig's Cake Company has an outstanding issue of 15-year convertible bonds with a $1,000 par value. These bonds are convertible into 80 shares of common stock. They have a 13% annual coupon interest rate, whereas the int ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As

Follow Us

© Copyright 2013-14 mywordsolution.com All rights reserved