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  • U.S Treasury Bonds Critical Return - 6.30% (Chart in Textbook) Average Return 6.20% Standard Deviation 12.50%

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    Ivy P. Nguyen
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    U.S. Treasury bonds had a critical return of -6.30%, an average return of 6.20%, and a standard deviation of 12.50% over the period shown in the textbook chart. The 95% confidence interval for returns was between -18.80% and 31.20% and the 99% confidence interval was between -31.30% and 43.70%.

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    Fundamentals of Investment Valuation and Management Solution Chapter 1 Excel

    Original Title

    Chapter 1

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    U.S. Treasury bonds had a critical return of -6.30%, an average return of 6.20%, and a standard deviation of 12.50% over the period shown in the textbook chart. The 95% confidence interval for returns was between -18.80% and 31.20% and the 99% confidence interval was between -31.30% and 43.70%.

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    U.S Treasury Bonds Critical Return - 6.30% (Chart in Textbook) Average Return 6.20% Standard Deviation 12.50%

    Uploaded by

    Ivy P. Nguyen
    U.S. Treasury bonds had a critical return of -6.30%, an average return of 6.20%, and a standard deviation of 12.50% over the period shown in the textbook chart. The 95% confidence interval for returns was between -18.80% and 31.20% and the 99% confidence interval was between -31.30% and 43.70%.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 4

    U.

    S Treasury Bonds
    Critical return -6.30% (Chart in textbook)
    Average return 6.20%
    Standard deviation 12.50%

    Output area

    Probability less than -6.30% 0.1586552539


    Range Lower return Upper return
    95% -18.80% 31.20%
    99% -31.30% 43.70%
    Year
    1 -9%
    2 17%
    3 9%
    4 14%
    5 -4%

    Arithmetic return 5.40%


    Geometric return 4.90%
    Input Area
    Year Yearly Returns Current Bal
    0 1000
    1 (0.09) 910.00
    2 0.17 2,234.70
    3 0.09 2,943.58
    4 0.14 4,495.68
    5 (0.04) 5,275.85

    Output Area
    Arithmetic mean 5.40%
    Geometric mean 4.90%
    Dollar-weighted return -530810%
    The investor deposits an additional $1,000 every subsequent year
    Cash Flow
    1000
    1,910.00
    3,234.70
    3,943.58
    5,495.68

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