Download the spreadsheet from MyFinanceLab containing the realized return of the S&P 500 from 19292008. Starting in

Question:

Download the spreadsheet from MyFinanceLab containing the realized return of the S&P 500 from 1929–2008. Starting in 1929, divide the sample into four periods of 20 years each. For each 20-year period, calculate the final amount an investor would have earned given a $1000 initial investment. Also express your answer as an annualized return. If risk were eliminated by holding for 20 years, what would you expect to find? What can you conclude about longrun diversification?

Stocks
Stocks or shares are generally equity instruments that provide the largest source of raising funds in any public or private listed company's. The instruments are issued on a stock exchange from where a large number of general public who are willing...