Use the following table: Series Average return Large stocks 11.76 % Small stocks 16.46 Long-term corporate bonds 6.23 Long-term government bonds 6.10 U.S. Treasury bills 3.83 Inflation 3.10 a. Determine the return on a portfolio that was equally invested in large-company stocks and long-term corporate bonds. b. What was the return on a portfolio that was equally invested in small stocks and Treasury bills?
Use the following table: Series Average return Large stocks 11.76 % Small stocks 16.46 Long-term corporate bonds 6.23 Long-term government bonds 6.10 U.S. Treasury bills 3.83 Inflation 3.10 a. Determine the return on a portfolio that was equally invested in large-company stocks and long-term corporate bonds. b. What was the return on a portfolio that was equally invested in small stocks and Treasury bills?
Chapter7: Types And Costs Of Financial Capital
Section: Chapter Questions
Problem 15DQ
Related questions
Question
Use the following table: |
Series |
Average return |
|
Large stocks | 11.76 | % |
Small stocks | 16.46 | |
Long-term corporate bonds | 6.23 | |
Long-term government bonds | 6.10 | |
U.S. Treasury bills | 3.83 | |
Inflation | 3.10 | |
a. |
Determine the return on a portfolio that was equally invested in large-company stocks and long-term corporate bonds. |
b. | What was the return on a portfolio that was equally invested in small stocks and Treasury bills? |
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