Given the data​ here, Compute the average return for each of the assets from 1929 to 1940 (the Great​ Depression) ​(Round to five decimal​places.) Compute the variance and standard deviation for each of the assets from 1929 to 1940. ​(Round to five decimal​places.) Which asset was riskiest during the Great​ Depression? How does that fit with your​ intuition? ​(Round to five decimal​places.) Note​: Notice that the answers for average​ return, variance and standard deviation must be entered in decimal format.

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Risk and return

Before understanding the concept of Risk and Return in Financial Management, understanding the two-concept Risk and return individually is necessary. 

Capital Asset Pricing Model

Capital asset pricing model, also known as CAPM, shows the relationship between the expected return of the investment and the market at risk. This concept is basically used particularly in the case of stocks or shares. It is also used across finance for pricing assets that have higher risk identity and for evaluating the expected returns for the assets given the risk of those assets and also the cost of capital.