Question

In: Finance

2) Last year an investment in the Vanguard Total Market Index returned a negative 7.6 percent...

2) Last year an investment in the Vanguard Total Market Index returned a negative 7.6 percent per year with a standard deviation of 18.3 percent (in line with the 18% observed in decades past, but much higher than the past couple of years). Assuming that the returns on this investment are at least roughly normally distributed, how frequently do you expect to earn between -25.9 percent and 10.7 percent? How often do you expect to earn less than -25.9 percent?

Solutions

Expert Solution

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE


Related Solutions

Scenario: Melissa Denton is a 68-year old individual who retired from Vanguard Corporation last year. Vanguard...
Scenario: Melissa Denton is a 68-year old individual who retired from Vanguard Corporation last year. Vanguard is a multi-national corporation employing over 10,000 employees. She worked for the company for over 20 years, and was fully insured for purposes of Social Security retirement benefits, which she began receiving at age 63. At age 65, her Medicare Part A coverage began, and she opted to receive Medicare Part B coverage. Melissa has come to you with the following questions regarding her...
Last year, a practice's returned claims were 5% of total submissions (400,000 claims). The accuracy standards...
Last year, a practice's returned claims were 5% of total submissions (400,000 claims). The accuracy standards require 97.0% accuracy and you hope to see this standard applied enterprise wide for all coding. How many returned claims will be allowed? 20,000 claims 320,000 claims 388,000 claims 12,000 claims
Congratulations! Your portfolio returned 9.1​% last​ year, 2.3​% better than the market return of 6.8​%. Your...
Congratulations! Your portfolio returned 9.1​% last​ year, 2.3​% better than the market return of 6.8​%. Your portfolio had a standard deviation of earnings equal to 21​%, and the​ risk-free rate is equal to 4.1​%. Calculate​ Sharpe's measure for your portfolio. If the​ market's Sharpe's measure is 0.38​, did you do better or worse than the market from a​ risk/return perspective? The​ Sharpe's measure of your portfolio is ____ (Round to two decimal​ places.) Your​ portfolio's performance is ___ equal inferior...
What is the variance of returns if over the past three years an investment returned 8.0 percent, -12.0 percent, and 15.0 percent?
PLEASE SHOW WORK What is the variance of returns if over the past three years an investment returned 8.0 percent, -12.0 percent, and 15.0 percent? 112 196 265 131
An investment has returned 13%, 6%, -7%, 4%, and 13% in each of the last five...
An investment has returned 13%, 6%, -7%, 4%, and 13% in each of the last five years. If we decide to use historical returns as a proxy for expected future returns, what is the expected rate of return? What is the YTM of a 10 year, 6% annual coupon bond with a price of $980?
An investment has returned 10%, 1%, -1%, 0%, and 16% in each of the last five...
An investment has returned 10%, 1%, -1%, 0%, and 16% in each of the last five years. If we decide to use historical returns as a proxy for expected future returns, what is the expected rate of return?
Say you own an asset that had a total return last year of 10.3 percent. If...
Say you own an asset that had a total return last year of 10.3 percent. If the inflation rate last year was 4.1 percent, what was your real return? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Say you own an asset that had a total return last year of 16 percent. If...
Say you own an asset that had a total return last year of 16 percent. If the inflation rate last year was 5.5 percent, what was your real return? Multiple Choice • 9.85% • 9.95% • -9.05% • 10.05% • 10.15%
Say you own an asset that had a total return last year of 10.7 percent. If...
Say you own an asset that had a total return last year of 10.7 percent. If the inflation rate last year was 4.9 percent, what was your real return? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)   Real return %
Say you own an asset that had a total return last year of 14 percent. If...
Say you own an asset that had a total return last year of 14 percent. If the inflation rate last year was 5.5 percent, what was your real return? Multiple Choice 7.96% 8.16% 8.26% -7.46% 8.06%
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT