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Given the data? here, Yearly returns from 1929-1940 for the S&P 500, small stocks, corporate bonds, world portfolio, Treasury bills, and inflation (as measured by the CPI)
Given the data? here,
Yearly returns from 1929-1940 for the S&P 500, small stocks, corporate bonds, world portfolio,
Treasury bills, and inflation (as measured by the CPI).
Year S&P 500 Small Stocks Corp Bonds World Portfolio Treasury Bills CPI
1929 -0.08907 -0.50467 0.04321 -0.07692 0.04737 0.00746
1930 -0.25257 -0.45583 0.06343 -0.22574 0.02347 -0.06420
1931 -0.43858 -0.50216 -0.02380 -0.39305 0.01023 -0.09235
1932 -0.08861 0.08696 0.12198 0.03030 0.00806 -0.10465
1933 0.52895 1.87200 0.05255 0.66449 0.00293 0.00974
1934 -0.02341 0.25209 0.09728 0.02552 0.00155 0.01286
1935 0.47208 0.64739 0.06860 0.22782 0.00165 0.03175
1936 0.32801 0.87508 0.06220 0.19283 0.00175 0.01231
1937 -0.35258 -0.53403 0.02546 -0.16950 0.00319 0.03040
1938 0.33199 0.26275 0.04357 0.05614 0.00041 -0.02950
1939 -0.00910 0.00184 0.04247 -0.01441 0.00008 0.00000
1940 -0.10082 -0.12340 0.04512 0.03528 -0.00058 0.00912
.
a. Compute the average return for each of the assets from 1929 to 1940 ?(the Great? Depression).
b. Compute the variance and standard deviation for each of the assets from 1929 to 1940.
c. Which asset was riskiest during the Great? Depression? How does that fit with your? intuition?
Note?: Notice that the answers for average? return, variance and standard deviation must be entered in decimal format.
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