returns of S&P 500 stocks are normally distributed, what range of returns would you expect to see 95% of the time? Base your answer ne information below. verage Return Standard Deviation of returns Small Stocks 19.84% 38.86% he 95% prediction interval of the S&P500 is between S&P 500 11.78% 19.22% Corporate Bonds 6.29% 6.14% T-Bills 4.98% 3.68% % and %. (Round to two decimal places and put the lower number first.)
returns of S&P 500 stocks are normally distributed, what range of returns would you expect to see 95% of the time? Base your answer ne information below. verage Return Standard Deviation of returns Small Stocks 19.84% 38.86% he 95% prediction interval of the S&P500 is between S&P 500 11.78% 19.22% Corporate Bonds 6.29% 6.14% T-Bills 4.98% 3.68% % and %. (Round to two decimal places and put the lower number first.)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Capital asset pricing model, also known as CAPM, shows the relationship between the expected return of the investment and the market at risk. This concept is basically used particularly in the case of stocks or shares. It is also used across finance for pricing assets that have higher risk identity and for evaluating the expected returns for the assets given the risk of those assets and also the cost of capital.
Question
Transcribed Image Text:If returns of S&P 500 stocks are normally distributed, what range of returns would you expect to see 95% of the time? Base your answer on
the information below.
Average Return
Standard Deviation of returns
Small Stocks
19.84%
38.86%
The 95% prediction interval of the S&P500 is between
% and
S&P 500
11.78%
19.22%
Corporate Bonds
6.29%
6.14%
T-Bills
4.98%
3.68%
%. (Round to two decimal places and put the lower number first.)
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