Consider the following table for the total annual returns for a given period of

Question

Consider the following table for the total annual returns for a given period of time. Average Standard Deviation 19.9% 33.0 8.4 9.4 5.7 3.1 4.2 Series return Large-company stocks Small-company stocks Long-term corporate bonds Long-term government bonds Intermediate-term government bonds U.S. Treasury bills Inflation 16.4 6.2 5.6 3.8 What range of returns would you expect to see 68 percent of the time for large-company stocks? (A negative answer should be indicated by a minus sign. Input your answers from lowest to highest to receive credit for your answers. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Expected range of returns What about 95 percent of the time? (A negative answer should be indicated by a minus sign. Input your answers from lowest to highest to receive credit for your answers. Do not %to round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Expected range of retums %to

Explanation / Answer

a. expected range of returns = 11.1% +/- 19.9%*1 where 1 is the approximate z score

so the range = -8.80% to 31.00%

b. expected range = 11.1% +/- 19.9%*1 96

sp the range = -27.90% to 50.10%

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