Over the period of 1926-2014 and among the investment classes presented, ______ had the highest average...

Over the period of 1926-2014 and among the investment classes presented, ______ had the highest average return, ______ had the lowest average return, and ______ had the highest risk premium.

Solutions

Expert Solution

BLANK 1 : SMALL COMPANY STOCKS

BLANK 2: T BILLS

BLANK 3 : SMALL COMPANY STOCKS

Explanation : During the period of 1926 -2014, Small company stock had highest return and highest risk, where as T bill has lowest risk and lowest risk. After small company stock comes large company stocks, then corporate bonds and then Govt bonds. And it follows that higher the risk, higher the volatility, stnadard deviation, risk[Thumbs up please]

jeff jeffy answered 2 years ago

Next > < Previous

Related Solutions

Which one of the following earned the highest risk premium over the period 1926-2013? Multiple Choice...

Which one of the following earned the highest risk premium over the period 1926-2013? Multiple Choice U.S. Treasury bills Long-term government bonds Small-company stocks Long-term corporate bonds Large-company stocks

Average daily temperatures (°C) in a northern city over a period of 60 days are presented...

Average daily temperatures (°C) in a northern city over a period of 60 days are presented in the partly completed grouped frequency distribution table below. Determine the missing values and complete the table. Class Frequency Relative Frequency Cumulative Frequency Cumulative Relative Frequency -20 to < 0.1 to < 0 0.15 15 0 to < 0.55 to < 20 57 20 to < 0.05 Total 60 - -

Which one of the following had the greatest volatility for the period 1926-2012? large-company stocks a....

Which one of the following had the greatest volatility for the period 1926-2012? large-company stocks a. U.S. Treasury bills b. long-term government bonds c. small-company stocks d. long-term corporate bonds For the period 1926-2015, long-term government bonds had an average return that ________ the average return on long-term corporate bonds while having a standard deviation that ________ the standard deviation of the long-term corporate bonds. a. exceeded; was less than b. exceeded; equaled c. exceeded; exceeded d. was less than;...

Consider the risk-free rate over your investment period was 6%, and the market's average return was...

Consider the risk-free rate over your investment period was 6%, and the market's average return was 14% with a standard deviation of 20%. What was your Sharpe ratio? What if you leverage your position? For example, what if you borrow USD 1,000 and invest USD 2,000 (USD 1,000 which you borrowed and USD 1,000 of your own money) in the market, what is your Sharpe ratio for this leveraged position? Explain (or proof) how the Sharpe ratio changes if you...

This 41-year-old client presented to the office in March of 2014 with infertility. She had a...

This 41-year-old client presented to the office in March of 2014 with infertility. She had a height of 5’6” and a weight of 131 lb, putting her at a healthy BMI of 21.1. She presented with a diagnosis of infertility, PCOS, irregular menstrual cycles that were anovulatory (based on laboratory work and menstrual charting using basal body temperature), ovarian cysts, fatigue and depression (from previous clomiphene use), and breast pain. She slept an average of 8 hours per night, was...

Which of the investments discussed has had the highest average return and risk premium? I Which...

Which of the investments discussed has had the highest average return and risk premium? I Which of the investments discussed has had the highest standard deviation? I What is capital market efficiency? I What are the three forms of market efficiency?

Use Excel for Problem 1-33 Interrelationships among financial statements Crawford Enterprises started the 2014 accounting period...

Use Excel for Problem 1-33 Interrelationships among financial statements Crawford Enterprises started the 2014 accounting period with $75,000 of assets (all cash), $15,000 of liabilities, and $25,000 of common stock. During the year, Crawford earned cash revenues of $46,000, paid cash expenses of $26,000, and paid a cash dividend to stockholders of $5,000. Crawford also acquired $15,000 of additional cash from the sale of common stock and paid $10,000 cash to reduce the liability owed to a bank. Required a.Prepare...

4. Suppose that, over a period, the average raw material unit cost was $ 4.85 and...

4. Suppose that, over a period, the average raw material unit cost was $ 4.85 and the average conversion cost was $ 9.15. At the end of the period, there were 600 units in process, with 100% of the raw material and 65% of the conversion costs. How much is the balance of the inventory of goods in process at the end of the period? to. $ 6,479 b. $ 8,400 c. $ 5,460 d. $ 5,850 5. A company...

Suppose that over some time period, the HML portfolio had a total return of -6% and...

Suppose that over some time period, the HML portfolio had a total return of -6% and the SMB portfolio had a total return of -4%. During that same time period, there are four mutual fund managers whose funds all earned a 10% return. One manager runs a big value stock fund, one runs a small value stock fund, one runs a big growth stock fund, and one runs a small growth stock fund. Who was the most skilled manager during...

Over a 20-year period, the average sentence given to defendants convicted of aggravated assault in the...

Over a 20-year period, the average sentence given to defendants convicted of aggravated assault in the United States was 25.9 months. Assume this to be your population mean. Because you think it might be different in your home state, you conduct a little study to examine this question. You take a random sample of 175 jurisdictions in your home state and find that the mean sentence for aggravated assault is 27.3 months, with a standard deviation of 6.5. Test the...

Subjects