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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.

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.

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Given the data​ here,

  1. Compute the average return for each of the assets from 1929 to 1940 (the Great​ Depression) ​(Round to five decimal​places.)
  2. Compute the variance and standard deviation for each of the assets from 1929 to 1940. ​(Round to five decimal​places.)
  3. 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.

 

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 - 0.02380 - 0.43858 - 0.08861 1931 - 0.50216 - 0.39305 0.01023 - 0.09235 1932 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 - 0.00910 - 0.10082 1939 0.00184 0.04247 - 0.01441 0.00008 0.00000 1940 - 0.12340 0.04512 0.03528 - 0.00058 0.00912
Transcribed Image Text: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 - 0.02380 - 0.43858 - 0.08861 1931 - 0.50216 - 0.39305 0.01023 - 0.09235 1932 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 - 0.00910 - 0.10082 1939 0.00184 0.04247 - 0.01441 0.00008 0.00000 1940 - 0.12340 0.04512 0.03528 - 0.00058 0.00912
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