Advanced Problems for Spreadsheet Application

These problems are available in MyFinanceLab.

  1. Returns and variances in the period 2000 to 2009 . The text presents the return rates for Treasury bills, Treasury bonds, large-cap stocks, and small-cap stocks from 1950 to 1999 in Table 8.1. The returns and prices for the period 2000–2009 are in the following table. Find the average return for each investment for the decade and the variance and standard deviation of each investment’s returns. The data for the S&P 500 Index and the Russell Index are the end-of-the-year values (prices). Convert this information to returns. The data for the thirteen-week Treasury bills and ten-year Treasury notes are the yields of the auctions.

    Description

    The ...

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