Quiz Ch 12 – Calculating Excess Return: Understanding the Formula
Fundamentals of Corporate Finance
Ross, Westerfield, and Jordan
13th Edition
How is excess return calculated?
How is excess return calculated?
Which investment choice had the highest risk premium during the period of 1926-2019?
Which securities category had the lowest average risk premium for the period 1926-2019?
What was the approximate actual real return of large-company stocks based on historical data from 1926-2019?
What is the likely outcome for investors with portfolios of aggressive stocks in the event of an 8% decline in the overall market?
What was the average annual percentage point difference between the returns of small-company stocks and large-company stocks over the period 1926-2019?
Which securities had the highest average annual return for the period 1926-2019?
What was the average inflation rate between 1926 and 2019?
What is the typical value of the average of the betas for all stocks?
What is the beta associated with a U.S. Treasury bill?