Year 1 2 3 4 5 6 Stocks -15.69% -26.77 37.43 24.13 - 7.56 6.77 Treasury Bills 7.49% 8.09 6.07 6.07 5.55 7.94 1. Calculate the arithmetic average returns for large-company stocks a this time period. (Do not round intermediate calculations and enter as a percent rounded to 2 decimal places, e.g., 32.16.) -2. Calculate the standard deviation of the returns for large-company stoc over this time period. (Do not round intermediate calculations and en answers as a percent rounded to 2 decimal places, e.g., 32.16.)

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter16: Financial Statement Analysis
Section: Chapter Questions
Problem 2MAD
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Consider the following table for a period of six years:
Returns
Year
1
-23456
Large-
Company
Stocks
-15.69%
-26.77
37.43
24.13
- 7.56
6.77
U.S.
Treasury Bills
a-1. Arithmetic average return
a-2. Standard deviation
7.49%
8.09
6.07
6.07
5.55
7.94
a-1. Calculate the arithmetic average returns for large-company stocks and T-bills over
this time period. (Do not round intermediate calculations and enter your answers
as a percent rounded to 2 decimal places, e.g., 32.16.)
a-2. Calculate the standard deviation of the returns for large-company stocks and T-bills
over this time period. (Do not round intermediate calculations and enter your
answers as a percent rounded to 2 decimal places, e.g., 32.16.)
Large-company
stocks
%
%
T-bills
%
%
Transcribed Image Text:Consider the following table for a period of six years: Returns Year 1 -23456 Large- Company Stocks -15.69% -26.77 37.43 24.13 - 7.56 6.77 U.S. Treasury Bills a-1. Arithmetic average return a-2. Standard deviation 7.49% 8.09 6.07 6.07 5.55 7.94 a-1. Calculate the arithmetic average returns for large-company stocks and T-bills over this time period. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) a-2. Calculate the standard deviation of the returns for large-company stocks and T-bills over this time period. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Large-company stocks % % T-bills % %
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